Refer to the Article Summary. Colorado taxes marijuana with a 12.9% sales tax on buyers and a 15% wholesale excise tax on producers, which equates to 46 percent of the total taxes paid by retail buyers and 54 percent paid by producers
Does this necessarily mean that buyers will bear 46 percent of the burden of the tax and producers will bear 56 percent of the burden?
A) Yes, the percentage of taxes paid by each group represents the burden of the tax.
B) No, because consumers and producers always bear equal burdens of a tax.
C) No, the burden of the tax will depend on the elasticity of demand and supply.
D) No, the burden of a tax is always 100 percent on the consumer.
C
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It is believed that in order to promote growth, a top priority of the World Bank and the International Monetary Fund is to
A) focus on basic market foundations of guaranteeing property and contract rights. B) promote the increase of dead capital. C) make more loans. D) join forces and merge into one unit.
The opportunity cost of holding money is that you
A) forego interest on an alternative asset. B) must make more trips to the bank to manage the money. C) have trouble balancing your check book. D) pay a higher tax rate. E) run a greater risk of being robbed.
The "French paradox" is the fact that
a. even moderate alcohol consumption carries severe health risks. b. moderate consumption of alcohol can actually be beneficial. c. 3 drinks per day for women, and 4 for men can prevent heart attacks and strokes. d. disease preventing properties are present only in French wine
A firm can find a competitive advantage
A) by differentiating its product. B) by having a barrier to entry. C) through its organizational structure. D) all of these choices.