The lower the price, the lower the consumer surplus, all else equal
a. True
b. False
Indicate whether the statement is true or false
False
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To have an effective price support program, the government must
i. isolate the domestic market from the world market. ii. pay the farmers a subsidy. iii. introduce a price floor. A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
If the supply curve is vertical, then supply is
A) relatively elastic. B) perfectly elastic. C) unit elastic. D) perfectly inelastic.
If all countries specialize in producing goods for which they have a comparative advantage, then total world output will be lower
Indicate whether the statement is true or false
Arnold Harberger's study on the incidence of the corporate income tax concluded that the burden of the tax is borne
A. by consumers in the form of higher prices and by workers in the form of lower wages. B. by corporations in the form of lower profits and by consumers in the form of higher prices. C. by owners of corporations, proprietorships, and partnerships in rough proportion to profits. D. only by noncorporate firms in the form of higher capital prices.