Tax shifting
a. is the process by which buyers pass a tax onto sellers
b. is the process that causes some of a tax collected by one side of a market to be paid by the other side
c. is the process of avoiding taxes and lowering a tax burden
d. is a way of avoiding payment of a tax
e. is illegal in the United States
B
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When the Federal Reserve calls in a discount loan from a bank, the monetary base ________ and reserves ________
A) remains unchanged; decrease B) remains unchanged; increase C) decreases; decrease D) decreases; remains unchanged
In 2013, new stock sales accounted for ____ in corporate financing because corporations bought back some of their stock
a. $2 billion b. -$384 billion c. $1 trillion d. ?$65 billion
Suppose the accompanying figure shows the demand curve, marginal revenue curve and marginal cost curve for a monopolist.
When this monopolist maximizes its profit, consumer surplus equals the area:
A. ABJ. B. ACKJ. C. AELJ. D. ACN.
Based on your understanding of your roommate's preferences, you predict that he will select the spaghetti for his lunch at the cafeteria, but instead he chooses the gyros. How do you describe this event in terms of economic theory?
A) Your roommate is irrational. B) Your roommate does not know what is in his own best interests. C) You roommate does not know his own preferences as well as you do. D) You constructed a model that made a prediction, and the prediction was refuted.