In the figure above, imposing a tax on the sellers of the product results in a division in which
A) all of the tax is paid by the buyers.
B) all of the tax is paid by the sellers.
C) the buyers and sellers pay the same amount.
D) neither the buyers nor the sellers pay the tax.
B
You might also like to view...
The three oil shocks the U.S. experienced in 1973-1974, 1979-1980 and 2007-2008 had a consistent result ________
A) a decline in the MPK B) a decline in the real rental price of capital C) a decline in stock prices D) all of the above E) none of the above
If the actual price level is less than the expected price level reflected in long-term contracts, _____
a. firms will find production more profitable in the short run than they had expected and will decrease the quantity of output supplied b. firms will find production less profitable in the short run than they had expected and will decrease the quantity of output supplied c. firms will find production more profitable in the short run than they had expected and will increase the quantity of output supplied d. resource owners will earn higher returns in the short run than they had expected and will decrease the quantity of resources supplied e. unemployment will increase in the short run as firms will substitute labor with capital inputs
In an efficient market, a scarce good generally has a ____ than a less-scarce good.
A. higher price B. higher total utility to consumers C. more even distribution across income classes D. lower price in off-peak periods
MC and MU are set equal to one another in a market economy because
A. producers and consumers are free to communicate with one another. B. producers and consumers both respond to the same price. C. consumers must accept the prices set by producers. D. producers must accept the price set by consumers.