If an excise tax is placed on a product that has a perfectly inelastic demand, then:
A. the entire tax will be paid by the consumer.
B. the entire tax will be paid by the producer.
C. the consumer and producer will each pay a share of the tax.
D. the incidence of the tax cannot be determined unless we know the coefficient of price elasticity of supply.
Answer: A
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Assuming there is a rise in supply of copper, if the market for copper is allowed to adjust, the ultimate result will be:
A) an increase in price and an increase in the quantity demanded. B) an increase in price and an increase in the quantity supplied. C) a decrease in price and an increase in the quantity demanded. D) a decrease in price and an increase in the quantity supplied.
Percentage markups are characteristically lower in supermarkets than in convenience stores because
A) convenience stores must charge high markups to compensate for low volume. B) marginal revenue is greater in supermarkets than in convenience stores. C) supermarkets are able to operate with a lower percentage return on investment. D) supermarkets can take advantage of quantity discounts. E) the demand curves of customers patronizing supermarkets tend to be more elastic.
Exchange rates determined by the forces of demand and supply are called
a. fixed exchange rates. b. floating exchange rates. c. equilibrium exchange rates. d. dirty exchange rates.
The Phillips Curve is steeper at higher rates of inflation and lower levels of unemployment
a. True b. False Indicate whether the statement is true or false