The simultaneous imposition of a 3 cent sales tax and a 5 cent excise tax on the sale of a cup of coffee would have the same effect on coffee sales as:
a. a 2 cent subsidy.
b. a 2 cent excise tax .
c. a 3 cent excise tax .
d. an 8 cent excise tax.
d. an 8 cent excise tax.
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The law of demand implies that if nothing else changes, there is
A) a positive relationship between the price of a good and the quantity demanded. B) a negative relationship between the price of a good and the quantity demanded. C) a linear relationship between price of a good and the quantity demanded. D) an exponential relationship between price of a good and the quantity demanded.
Why is a firm in perfect competition a price taker?
What will be an ideal response?
Labor mobility was
A) less in 1900 than in 2010. B) unimportant to global integration until the 1960s. C) greater in 1900 than in 2010. D) never controversial. E) a brand new feature of the global economy in the twenty-first century.
Explain and demonstrate graphically how targeting the federal funds rate can result in fluctuations in nonborrowed reserves
What will be an ideal response?