Suppose the demand curve for a product is horizontal and the supply curve is upward sloping. If a per-unit tax is imposed in the market for this product
A) buyers bear the entire burden of the tax.
B) the tax burden will be shared by buyers and sellers.
C) the tax burden will be shared among the government, buyers, and sellers.
D) sellers bear the entire burden of the tax.
D
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According to the Coase theorem, if transactions and negotiations are costless:
a. people would arrive at agreements that maximize their individual benefits. b. people would arrive at agreements that maximize the total economic value. c. people would arrive at agreements that minimize their individual costs. d. people would arrive at agreement that minimize the total social cost.
A monopoly price reflects a good’s marginal utility.
Answer the following statement true (T) or false (F)
Both the ____ and the ______ issue bank charters.
Fill in the blank(s) with the appropriate word(s).
The ________ impact of a negative aggregate demand shock is ________ when the government does not target the deficit because targeting the deficit causes further negative aggregate demand shocks.
A. adverse; reduced B. neutral; reduced C. adverse; increased D. neutral; increased