Consumers will always pay the entire amount of a specific tax whenever
A) demand is perfectly inelastic.
B) supply is perfectly elastic.
C) Both A and B above.
D) Either A or B above but not at the same time.
C
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Refer to the scenario above. Suppose the cost of advertising in this industry is very high and each company will incur a cost of $3 million annually if they choose to advertise. Which of the following is true in this case?
A) Company A's best response is to advertise if Company B advertises. B) Company B's best response is to advertise irrespective of what Company A does. C) Company A's dominant strategy is to advertise. D) This game does not have a dominant strategy equilibrium.
If the growth rate of real GDP rises from 3% to 4% per year, then the number of years required to double real GDP will decrease from
A) 11.2 years to 10.8 years. B) 23.3 years to 17.5 years. C) 28.0 years to 21.0 years. D) 23.3 years to 20.6 years. Table 21-1 Year Real GDP (billions of 2000 dollars) 2013 $8,700 2014 8,875 2015 9,000 2016 9,280
The term "surplus" refers to a:
A. situation in which the quantity supplied is less than the quantity demanded. B. situation in which the quantity demanded is less than the quantity supplied. C. market that sells secondary goods. D. signal that producers need to increase the price of the good.
In the short run, monopolistically competitive firms:
A. can earn positive economic profits by acting like a monopolist. B. can earn positive economic profits by acting like a perfectly competitive firm. C. will earn zero economic profits by acting like a monopolist. D. will earn zero economic profits by acting like a perfectly competitive firm.