Assuming the demand curve is more elastic (flatter) than the supply curve, which of the following is true?
a. The full tax is always passed to the consumer no matter how flat (elastic) the demand curve is.
b. The full tax is always passed to the seller no matter how flat (elastic) the demand curve is.
c. The smaller the portion of a sales tax that is passed to the consumer.
d. It does not make any difference how flat (elastic) the demand curve is; the tax is always split evenly between buyer and seller.
c
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Refer to Table 2-9. Which of the following statements is true?
A) Serena has a comparative advantage in making both products. B) Haley has a comparative advantage in making both products. C) Haley has a comparative advantage in making bracelets and Serena in making necklaces. D) Haley has a comparative advantage in making necklaces and Serena in making bracelets.
Using the Keynesian model, the effect of a decrease in the effective tax rate on capital would be to cause ________ in the real interest rate and ________ in output in the short run
A) a decrease; a decrease B) a decrease; no change C) an increase; an increase D) no change; a decrease
In the balance of payments, all of the following are deficit items EXCEPT
A) imports of merchandise. B) funds placed in foreign depository institutions. C) sales of dollars to foreigners. D) tourism expenditures abroad.
Since the 1930s, out-of-pocket payments for health care have
A) declined from about 50 to 30 percent of total payments. B) declined from about 95 to 20 percent of total payments. C) declined from about 70 to 30 percent of total payments. D) not changed and remain at 70 percent of total payments.