When do consumers bear the larger share of a tax?
What will be an ideal response?
when demand is inelastic
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In the above figure suppose a minimum wage of $8 per hour is imposed. As a result, the quantity of labor supplied is ________ hours and the quantity of labor demanded is ________ hours
A) 3,000; 4,000 B) 4,000; 4,000 C) 2,000; 4,000 D) 4,000; 2,000
Firms in an oligopoly market will have a more difficult time maintaining price coordination when:
A) demand for the firms' products remains stable. B) the firms' cost structures are similar. C) the firms' products are highly differentiated. D) each firm controls the same share of the market.
Use the international trade effect to explain why our aggregate demand curve is downward sloping
When the U.S. real interest rate falls
a. U.S. purchases of foreign assets and foreign purchases of U.S. assets rise b. U.S. purchases of foreign assets rise and foreign purchases of U.S. assets fall c. U.S. purchases of foreign assets fall and foreign purchases of U.S. assets rise d. U.S. purchases of foreign assets and foreign purchases of U.S. assets fall