The burden of a tax falls entirely on buyers if ________
A) the price elasticity of demand is zero (perfectly inelastic)
B) the price elasticity of demand is greater than 1
C) the income elasticity of demand is high
D) the price elasticity of supply is unitary elastic
A
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The decline in the US manufacturing sector was the result of:
a. increasing productivity in the manufacturing sector. b. the increasing ability of consumers to purchase foreign manufactured goods more cheaply. c. faster growth of the service sector. d. All of the above are correct. e. Only b and c are correct.
In the rational expectation model, government control over aggregate demand: a. gives it the power to alter real output and employment even when the effects of government policies are expected. b. can affect real output in the short-run only if policies are unexpected
c. has potential to change long-run real output as long as the aggregate supply curve is vertical. d. has highly unpredictable effects on real output in the long run.