Question

1.The number of homes in city center is very limited and even if prices increased significantly, very few additional homes could be made available for sale. The burden of the sales tax on the sale of homes is carried by

Select the correct answer below:

A:primarily the home buyers.

B:primarily the home sellers.

C:both buyers and sellers equally.

D:the government.

2.

In a command economy, the government decides _____________.

Select all that apply:

A:which goods and services will be produced and the prices to be charged for them

B:nothing about the economy

C:each person's occupation based on tradition

D:which methods of production will be used and how much workers will be paid

3.Producer surplus is the difference between the amount that suppliers in the market are willing to sell goods for and _____________.

Select the correct answer below:

A:the marginal cost of producing each good

B:the total cost of producing those goods

C:the amount they actually receive for those goods

D:the amount buyers wish to pay for those goods

Answer 1

Answer 1.Option A ) primarily the home buyers.

The number of homes in city center is very limited and even if prices increased significantly, very few additional homes could be made available for sale. The burden of the sales tax on the sale of homes is carried by primarily the home buyers because of less supply of homes.

Answer 2. Option A) which goods and services will be produced and the prices to be charged for them

In a command economy, the government decides which goods and services will be produced and the prices to be charged for them. The reason is that in command economy government role is main.

Answer 3. Option C): the amount they actually receive for those goods

Producer surplus is the difference between the amount that suppliers in the market are willing to sell goods for and the amount they actually receive for those goods