The incidence of a tax refers to
a. who receives the benefits from the revenue generated by the tax
b. the changes in the marginal tax rate as income increases
c. whether the tax is regressive, proportional, or progressive
d. who bears the burden of the tax
e. whether the tax is based on the ability-to-pay principle
D
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What happens in the short run in the Keynesian model to the exchange rate and net exports in each of the following cases?
(a) The foreign real interest rate falls. (b) Foreign output rises. (c) Foreign demand for domestic goods rises. (d) Domestic output rises. (e) The domestic real interest rate falls.
Which of the following would most likely be considered complements?
A) butter and margarine B) rental cars and taxis C) plastic wrap and aluminum foil D) tennis rackets and tennis balls
Supply is said to be inelastic if the quantity supplied responds substantially to changes in the price and elastic if the quantity supplied responds only slightly to price
a. True b. False Indicate whether the statement is true or false
A negative network externality causes demand to become:
A. unit elastic. B. perfectly inelastic. C. less elastic. D. more elastic.