When business leaders become pessimistic about future sales and profits and increase their spending on plant and equipment, their expectations are usually fulfilled

A market shortage occurs if the:

A) price is above the equilibrium price. B) price is equal to the equilibrium price. C) equilibrium price is above the current price. D) equilibrium price is below the current price.

When Congress passed a law that imposed a tax designed to fund its Social Security and Medicare programs it wanted employers and workers to share the burden of the tax equally

Most economists who have studied the incidence of the tax have concluded A) the tax rate should be greater for high-income workers than for low-income workers. B) the burden of the tax falls almost entirely on workers. C) the tax is not high enough to cover the future costs of Social Security and Medicare. D) the tax on employers is too high because it reduces the employment of low-skilled workers.