The incidence of a tax explains what group pays the burden of a tax.
Answer the following statement true (T) or false (F)
True
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The National Banking System under the Bank Act of 1863 created a banking system comprised of a mixture of
(a) special state charters. (b) nonchartered private banks. (c) free banks. (d) all of the above.
A fall in the price of pesticide use in the production of cotton will
A) decrease the supply of cotton, causing the supply curve of cotton to shift to the left. B) increase the supply of cotton, causing the supply curve of cotton to shift to the left. C) cause a downward movement along the supply curve of cotton. D) have no effect on the supply of cotton. E) None of the above
Public choice theory suggests politicians will be most likely to favor redistribution of income from
a. the rich to the poor. b. unorganized taxpayers to well-organized interest groups. c. middle-income taxpayers to both the rich and the poor. d. well-organized businesses and labor groups to consumers.
Consider the market for medical doctors. Suppose the opportunity cost of going to medical school increases for many individuals. Suppose it generally takes about ten years to become a practicing doctor. Holding all else constant, in ten years the equilibrium quantity of doctors will
a. increase. b. decrease. c. not change. d. It is not possible to determine what will happen to the equilibrium quantity.