The sum of the current yield and the rate of capital gain is called the
A) rate of return.
B) discount yield.
C) perpetuity yield.
D) par value.
A
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How can we anticipate the proportion of a newly imposed unit excise tax that consumers will pay?
A) Consumers will pay most of the tax whenever their demand for a product is relatively unresponsive to price changes. B) Consumers will always pay 100 percent of an excise tax. C) Consumers will pay most of the tax whenever their demand for the product is very price sensitive. D) Since producers always pay 100 percent of an excise tax, we know consumers will not pay any of the tax.
Which of the following factors would indicate a more elastic demand?
A. The good is a necessity, rather than a luxury. B. The good represents a small fraction of the budget. C. Demand is measured over a longer period of time. D. There are few substitutes for the good.
A change in ________ causes a change in ________ and therefore a change in ________
A) cost; demand; price B) price; demand; supply C) supply; price; demand D) demand; price; cost
Firms that populate the monopolistically competitive market are not price takers but price makers
Indicate whether the statement is true or false