The responsibility of companies to take into account the social consequences of their actions is called social responsibility.

Select one:

True

False

At equilibrium an item is selling for $30 a unit. At this price, consumers demand 100 units. If the government imposes an Ad valorem tax of 5% the equilibrium quantity demanded and supplied will fall to 90 units and the price will rise to $31. How much of the tax is forward shifted (paid by consumer)

When a government imposes an import quota:

Select one:

a.

Domestic prices of local goods decrease.

b.

Government pays suppliers subsidy.

c.

Consumers gain from lower prices of imported goods.

d.

Domestic producers gain.