When the demand for a product is less elastic than the supply
A) consumers pay the entire tax on the product.
B) firms pay the entire tax on the product.
C) consumers pay the majority of the tax on the product.
D) firms pay the majority of the tax on the product.
C
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The expectations theory
A) has difficulty explaining why U.S. Treasury securities have lower yields than corporate bonds. B) has difficulty explaining why yields on bonds of different maturities move together. C) has difficulty explaining why yield curves usually slope upward. D) accounts well for the fact that yield curves usually slope upward.
The following graph shows the production possibilities curve for the economy with only two members, Silvia and Art. Silvia can produce either 50 pounds of beef or 2 computers per week, and Art can produce 100 pounds of beef or 1 computer per week. Both of them work 40 weeks per year.
With the open trade economy, Silvia and Art can consume any combination of beef and computers from the line
A. XY. B. PQ. C. PY. D. XYZ.
When economic profits in a perfectly competitive industry are positive
A. firms will increase output to earn even higher profits. B. firms will increase prices while they have the opportunity. C. new firms will be attracted to the industry, and economic profits will decline to zero. D. the industry is in equilibrium.
When a household lends money directly to a firm, the firm gives the household a
A. dividend. B. bond. C. certificate of investment. D. share of stock.