If the demand curve is perfectly inelastic, _____
a. suppliers will bear the entire burden of any tax
b. demanders will bear the entire burden of any tax
c. suppliers and demanders will split the burden of any tax
d. the actual burden of the tax depends upon who is legally required to pay the tax
b
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A guarded barbed wire fence separates East and West Bovinia. Soccer players are paid twice as much in West Bovinia as in East Bovinia. This is an example of
a. inelastic supply b. a temporary resource price differential c. a permanent resource price differential d. diminishing marginal revenue product e. economic rent
Which of the following categories accounted for the third largest percentage of total federal government expenditures?
a. Education and health. b. National defense. c. Income security. d. Interest on the national debt.