Which of the following generalizations about the burden of an excise tax is correct?
a. The more inelastic the supply of a product, the larger the portion of an excise tax will be paid by buyers.
b. The more inelastic the demand for a product, the larger the portion of an excise tax will be paid by buyers.
c. The more elastic the supply of a product, the smaller the portion of an excise tax will be paid by buyers.
d. The burden of an excise tax on a product is independent of the elasticity of the supply and demand for the product on which the tax is levied.
B
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Answer the following statements true (T) or false (F)
1. The production function relates outputs to inputs. 2. The marginal product is the increase in output per additional unit of input. 3. The marginal product decreases, reaches a minimum, and then rises as output increases. 4. As long as the marginal product is falling, the average product falls. 5. The average product decreases any time the marginal product is decreased.
An increase in wealth would shift the:
A) aggregate demand curve rightward. B) aggregate demand curve leftward. C) aggregate supply curve rightward. D) aggregate supply curve leftward.
Demand is based on:
a. desires, regardless of ability to pay. b. needs and wants, and the ability to pay. c. what supplies can provide. d. government calculations.
The current U.S. unemployment insurance program tends to
a. increase the incentive to switch occupations. b. reduce the time workers stay unemployed. c. make it more costly for unemployed workers to turn down available jobs. d. raise the unemployment rate.