The government imposes a luxury tax on automobiles that cost more than $40,000. As a result, fewer individuals purchase cars that cost more than $40,000. This is an example of
A. tax equity.
B. tax shifting.
C. tax incidence.
D. tax evasion.
Answer: B
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If the price of tables sold by All-Oak Table Co. increases from $400 to $500, then the:
A. demand for labor by All-Oak Table Co. decreases. B. demand for labor by All-Oak Table Co. increases. C. supply of labor to All-Oak Table Co. increases. D. supply of labor to All-Oak Table Co. decreases.
If the potential money multiplier is 5, a $1 initial increase in demand deposits must lead to a $5 increase in demand deposits
Indicate whether the statement is true or false
If a person supplies fewer hours of labor in response to a wage increase, then
A) the substitution effect is greater than the income effect. B) the income effect is greater than the substitution effect. C) the income effect equals the substitution effect. D) the person is not maximizing utility.
A commercial bank lists
A. loans as liabilities. B. required reserves as liabilities. C. deposits as liabilities. D. excess reserves as liabilities.