When is the largest portion of tax paid by the consumer?
a. when demand is less elastic than supply
b. when demand is more elastic than supply
c. when demand and supply have an equal elasticity
d. when demand and supply have fluctuating elasticity
a. when demand is less elastic than supply
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The difference between the cost of production on a piece of land less the cost of production on marginal land is called
A. usury. B. profit. C. rent. D. interest.
When there is an interval between when the fiscal policy changes and corresponding changes in aggregate spending, we have a(n)
A) aggregate time lag. B) action time lag. C) recognition time lag. D) effect time lag.
In real life, people's behavior is constrained by:
A. laws of nature. B. legislated rules of society. C. costs of various actions. D. All of these are rules that constrain people's behavior.
An individual with a highly elastic demand for gasoline will:
A. stop using gasoline entirely if a tax is imposed. B. refuse to cut consumption for any reason. C. cut consumption more than an individual with a highly inelastic demand when price goes up. D. cut consumption less than an individual with a highly inelastic demand when price goes up.