In the United States, controlling inflation is the primary job of ______.

If restrictions on entry and exit of firms are introduced in free markets, ________

A) all existing firms earn equal profits in the long run B) existing firms incur equal losses in the long run C) the market allocates resources efficiently D) resources in the market are not allocated efficiently

Suppose that the government wants the burden of the cigarette tax to fall equally on buyers and sellers and declares that a $1.00 tax be imposed on each. Is the burden of the tax shared equally? Why or why not?

What will be an ideal response?