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RUTGERS MICRO EXAM 1 QUESTIONS AND UPDATE
Question : the incidence of a tax:
CORRECT ANSWER: refers to how much of the tax is
ly paid by consumers and producers
Question : points beyond the production-possibility
frontier
CORRECT ANSWER: are unattainable with current
resources
Question : the circular-flow diagram shows the flow of
____ and the flow of _______
CORRECT ANSWER: money; goods and services
Question : when a nations economy grows:
CORRECT ANSWER: its production possibility frontier
shifts outward
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