An excise tax levied on a product will impose a smaller relative burden on consumers (and a larger relative burden on sellers) when the:
A. supply of the product is relatively less elastic than demand.
B. supply of the product is relatively more elastic than demand.
C. tax is collected from the buyers.
D. tax is collected from the sellers.
Answer: A
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If U.S. official reserves increase, is the official settlements account balance positive, negative, or unaffected?
What will be an ideal response?
An income tax _____
a. increases the return to bearing risk, if the company is a monopolist b. has no impact on the return to bearing risk c. increases the return to bearing risk d. reduces the return to bearing risk
The nominal wage represents: a. the wage measured in terms of the quantity of goods and services a worker can purchase with it
b. the wage measured in terms of the dollar value of the goods and services a worker can purchase with it. c. the real wage from which personal taxes has been deducted. d. the standard of living of workers across time. e. the change in real wage brought about by changes in aggregate supply.
Keith just got an iPhone 5 for his birthday, and he quickly switches his data over and throws his iPhone 4 in a drawer and forgets about it. Economists would say this behavior is ________ and would use the concept of ________ to explain this choice.
A. irrational; the implicit cost of ownership B. irrational; ignoring sunk costs C. rational; considering sunk costs D. rational; the implicit cost of ownership