Consider a good whose own price elasticity of demand is -1.5 and price elasticity of supply is 0.5. The fraction of a specific tax that is borne by producers is ________
A) 0
B) 0.25
C) 0.5
D) 0.75
E) 1
D
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Persistent deficit after 1980 was almost entirely due to
A) higher share of expenditures in GDP. B) lower tax revenue. C) lower share of expenditures in GDP. D) Higher tax revenue.
A firm's marginal cost is defined as
a. the ratio of total cost to total output. b. the ratio of total output to total cost. c. the additional cost of producing one more unit of output. d. the reciprocal of total average cost.
Janae donates $50 to the local Humane Society. This means she can't buy that new pair of shoes, which according to her utility schedule, would have maximized her utility. This example illustrates the ________ aspect of behavioral economics
A) bounded self-interest B) bounded rationality C) bounded will-power D) empowerment effect
Industry X has four firms. The largest firm in Industry X has more than 90 percent of the market share. Industry Y also has four firms, but each of those four firms in Industry Y has 25 percent of the market share
The Herfindahl-Hirschman index will be A) the same for both industries, but the four-firm concentration will be larger for Industry Y than Industry X. B) the same for both industries, but the four-firm concentration will be larger for Industry X than Industry Y. C) larger for Industry Y than Industry X, but the four-firm concentration will be the same. D) larger for Industry X than Industry Y, but the four-firm concentration will be the same.