When many substitutes exist for a good, demand will be
A) elastic.
B) unit-elastic.
C) inelastic.
D) perfectly unit-elastic.
A
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What's another word for "marginal"?
A) Phenomenal B) Additional C) Sentimental D) Detrimental E) Magical
An aircraft company has signed a contract to deliver a plane 3 years from now. The price they will receive at the end of 3 years is $20 million. If the firm's cost of capital is 6%, what is the present value of this payment?
What will be an ideal response?
Eight years ago you purchased an asset for $100,000 that has yielded a nominal capital gain of $30,000. If you sold the asset today, your inflation-adjusted capital gains would be zero due to inflation over the last eight years
The capital gains tax is 28 percent. If you sold the asset today your tax liability would be A) zero. B) $28,000. C) $8,400. D) cannot be determined without more information.
What happens when the government imposes a unit excise tax on a good?
A) The amount of the tax is added to the current equilibrium price. B) The demand for the newly taxed good decreases. C) That good's supply curve shifts down by the amount of the tax. D) The newly taxed good's supply curve shifts vertically upward by the amount of the per-unit tax being levied.