In the case of a specific tax the resulting price received by producers depends on
A) who pays the tax.
B) the price elasticity of supply.
C) the price elasticity of demand.
D) All of the above.
D
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Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X, ceteris paribus.Table 1.3Production Possibilities for Brushes and CombsCombinationNumber of combsOpportunity Cost(Foregone brushes)Number of brushesOpportunity Cost (Foregone combs)J4 0NAK3 10 L2 17 M1 21 N0NA23 On the basis of Table 1.3, in the production range of 1 to 2 combs the opportunity cost of producing 1 more comb in terms of brushes is
A. 4. B. 1/2. C. 1/7. D. 2/17.
Buying financial assets from banks and other financial institutions in order to stimulate the economy is referred to as:
A. money easing. B. precommitment policy. C. quantitative easing. D. operation twist.
Following a decrease in government spending, as the price level falls we would expect the level of interest rates to ________ and investment to ________
A) decrease; decrease B) decrease; increase C) increase; decrease D) increase; increase
Which of the following macroeconomic variables is procyclical and coincident with the business cycle?
A. Unemployment B. Residential investment C. Nominal interest rates D. Industrial production