Answer the following statement(s) true (T) or false (F)
1. When suppliers are not satisfied, they lower their prices to attract more demanders.
2. If the demand for a good is high, then there will be a shortage of that good.
3. The equilibrium price of a good will rise in response to either a rise in demand or a fall in supply.
4. When a sales tax of 50¢ per carton is imposed on cigarettes, the equilibrium price drops by precisely 50¢ per carton.
5. Suppliers of a commodity are better off whenever the legal incidence of a tax is shifted away from the suppliers to the demanders.
1. True
2. False
3. True
4. False
5. False
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In 1979, under the ERM, the member countries were pegged to the ECU, with a ______ band of fluctuation allowed.
A) 2.5% B) 2.25% C) 1% D) 10%
If a country produces only two goods, it is possible to have an absolute advantage in the production of both goods
Indicate whether the statement is true or false