When a good with equally elastic demand and supply is taxed, the incidence of the tax is borne Group of answer choices
A) entirely by consumers.
B) entirely by producers.
C) by both consumers and producers.
D) mostly by consumers.
E) mostly by producers.
Answer: C) by both consumers and producers.
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When the official dollar price of a foreign currency is set below its equilibrium level, the foreign currency
A) has been depreciated. B) is overvalued. C) is undervalued. D) is devalued. E) is revalued.
What condition led the Fed to begin using quantitative easing?
A. Stagflation rendered open-market operations practically pointless because banks were neither buying nor selling bonds. B. Unemployment and inflation were both rising quickly, rendering traditional monetary policy unusable. C. Congress authorized the Fed to get involved in fiscal policy. D. The Fed could no longer reduce interest rates.
The U.S. baseball glove industry is an oligopoly. This means that glove suppliers face a ________________ than a monopoly glove supplier would:
a. smaller price effect b. larger price effect c. lower cost structure d. higher cost structure
Where along the long-run average total cost curve will an efficient firm try to produce in the long run?
a. Along the downward-sloping portion when there are economies of scale because cost per unit of output is decreasing at that level of production. b. Along the upward-sloping portion when there are diseconomies of scale because a firm will sell more output at that level of production. c. When there are constant returns to scale because this is the minimum efficient level of production, and cost per unit of output is at its lowest.