Refer to Figure 8A.2. Compared to curve s1Y, curve s2Y represents
A) a decrease in depreciation. B) a decrease in original capital stock.
C) a higher saving rate. D) a decrease in capital deepening.
C
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The mayor of Workerville proposes a local payroll tax to fund a new water park for the city. The mayor proposes to collect half the tax from workers and half the tax from firms. The mayor will be able to successfully divide the burden of the tax equally if the
a. demand for labor is more elastic than the supply of labor. b. supply of labor is more elastic than the demand for labor. c. demand for labor and supply of labor are equally elastic. d. It is not possible for the tax burden to fall equally on firms and workers.
An example of a sunk cost would be:
A. the price of a lift ticket you bought and used to ski the whole day. B. the nonrefundable deposit you put on your vacation rental. C. the price of a lift ticket you bought and used for 1 run before you fell and broke your ankle. D. All of these are examples of sunk costs.