In order to determine a household's budget line, you must know the
A) prices of the goods bought and the household's income.
B) prices of the goods bought, but not the household's income.
C) household's income, but not the prices of goods bought.
D) household's income, prices of the goods bought, and the household's preferences.
A
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With respect to unemployment, the classical model states that
A) unemployment of any kind cannot exist. B) involuntary unemployment will always exceed voluntary unemployment. C) unemployment fluctuates with the interest rate. D) only voluntary unemployment exists.
The more elastic the supply of a product, the more the actual burden of a tax on the product will:
a. fall on sellers. b. fall on buyers. c. fall equally on both buyers and sellers. d. create a smaller deadweight loss (or excess burden).