The economic benefit of a per-unit subsidy accrues disproportionately to the side of the market that is more price-inelastic.
Answer the following statement true (T) or false (F)
True
Rationale: Just as the cost of tax is disproportionately born by the more price-inelastic side of the market, the benefit accrues disproportionately to the more price inelastic side of the market.
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When the price of oranges increases,
A) the supply of oranges increases. B) the quantity of oranges demanded increases. C) the quantity of oranges supplied increases. D) the supply of oranges decreases. E) none of the above
The country with the highest child poverty rate in the industrial world is __________.
Fill in the blank(s) with the appropriate word(s).
Marginal revenue is the change in:
A. total profit brought about by selling one more unit of output. B. The change in price a firm can charge brought about by selling one more unit of output. C. total revenue brought about by selling one more unit of output. D. output brought about by a $1 change in product price.
Suppose that Paraguay can produce 12 wheat or 3 corn and Bolivia can produce 4 wheat or 2 corn. Suppose that opportunity costs are constant. Which of the following is a potentially agreeable trade arrangement for Paraguay and Bolivia?
A) Paraguay trades one corn to Bolivia for three units of wheat. B) Bolivia trades one corn to Paraguay for three units of wheat. C) Bolivia trades one corn to Paraguay for one wheat. D) Paraguay trades one wheat to Bolivia for two corn.