If elasticity of demand is 0.7, elasticity of supply is 0.7, and a 5 percent excise tax is levied on the good:
A. the tax burden on consumers will be greater.
B. the tax burden will be the same for both.
C. the tax burden on suppliers will be greater.
D. one cannot say who will bear the greater burden without knowing the tax.
Answer: B
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Answer the following statement(s) true (T) or false (F)
1. All baskets of labor and capital capable of producing a given level of output are technologically efficient. 2. The Marginal Rate of Technical Substitution can be expressed as the ratio of the Marginal Productivities of Labor and Capital. 3. Output is held fixed along an isocost. 4. Moving down and to the right on an isoquant tells us how much quantity increases as inputs increase. 5. Like a family, a firm faces a fixed level of expenditure and therefore must choose one point along a particular isocost line.
Many experts on the nursing shortage insist that, in addition to higher money wages, other ways will have to be found to make the nursing profession more attractive, including, for example, more respect from physicians and administrators, more flexible schedules, and more secure parking lots. These facts illustrate the concept of
A. exploitation. B. pecuniary principles. C. economic rent. D. nonmonetary attractiveness.
When you buy a corporate bond, you are
A) borrowing funds from the corporation. B) lending funds to the corporation. C) selling an ownership right in the corporation. D) acquiring an ownership right in the corporation. E) b and d
The unique situation in which the behavior of buyers and sellers is compatible is referred to as
A. Labor market balance. B. Full-employment GDP. C. Micro equilibrium. D. Macro equilibrium.