The more inelastic the demand for a product, the more the actual burden of a tax on the product will:
a. fall on sellers.
b. fall on buyers.
c. fall equally on both buyers and sellers.
d. create a larger deadweight loss (or excess burden).
b
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What is a normal profit? Is it part of the firm's opportunity costs, total revenue, or neither?
What will be an ideal response?
The Census survey collects data on regular wages, tips, commissions, and bonuses
Indicate whether the statement is true or false
Suppose that real GDP falls to 2 percent below potential GDP. Then, according to the Taylor rule, the Fed should reduce the federal funds, relative to the current rate of inflation, by:
A. ½ percentage point. B. 1 percentage point. C. 2 percentage points. D. 4 percentage points.
Related to the Economics in Practice on page 710: Which of the following is true concerning economic development in many countries?
A. It is affected by the level of corruption. B. It is affected by inefficiency in government. C. As corruption falls, the cost of production often falls. D. All of the above are true.