In 1984, the South Carolina State Supreme Court ruled that a 20 percent admission tax on X-rated movies was unconstitutional. When the affected cinemas sought a refund of collected taxes, they were denied on the grounds that the tax, although collected by the theater, was indeed paid by the theatergoers. The Supreme Court apparently believed
A. the supply of X-rated movies was perfectly elastic.
B. the demand for X-rated movies was perfectly inelastic.
C. the legislation intended that the theatergoers pay the tax.
D. the burden fell on the theatergoers—there are no excess burdens on the theater.
Answer: B
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During 1990–2003, as a percentage of total resource flows to developing countries, the share of official flows has
(a) remained relatively constant. (b) increased by a relatively small percentage. (c) increased by a relatively large percentage. (d) decreased by a relatively small percentage. (e) decreased by a relatively large percentage.
For all workers together, real wages grew between _____ and _____ percent between 1820 to 1860
a. 10; 20 b. 40; 60 c. 60; 90 d. 100; 150
Why is it difficult for an oligopolist to determine its profit-maximizing price and output?
GDP is: a. the value of all final goods and services produced domestically within a given period of time
b. the value of all final good and services produced anywhere in the world by a nation's firms within a given period of time. c. the value of all final goods and services produced by a government within a given period of time. d. the sum of all currency and coins in circulation.