In the above figure, the tax incidence is
A) that most of it is paid by the buyers.
B) that most of it is paid by the sellers.
C) split equally so that the buyers and sellers pay the same amount.
D) that neither the buyers nor the sellers pay it.
C
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The adaptive expectations hypothesis implies that people
a. adjust their expectations quickly to policy changes. b. expect the next period to be pretty much like the recent past. c. will always be correct in their forecast for the next period. d. change their expectations about the future if policy changes.
Which of the following is a characteristic of capitalism?
A. government ownership of all capital B. government decision-making is preferred to decentralized decision-making C. market determination of prices and quantity D. equality of income