The incidence of a tax explains what group pays the burden of a tax
a. True
b. False
Indicate whether the statement is true or false
True
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The only lasting solution to the welfare problem will have to come from welfare reform alone
Indicate whether the statement is true or false
Which of the following is most likely to occur in the labor market during a recession?
A. The growth rate of real wages declines. B. New entrants to the labor market have an easier time finding jobs. C. Bonuses and promotions become more frequent. D. The supply of labor increases dramatically.
The government can _______________ change an inefficient market outcome (in the case where there is a negative externality) into an efficient outcome by imposing a tax on the activity that generates the negative externality
A) in almost all situations B) possibly C) not D) in all situations E) a or d
The unregulated monopoly in the figure below will earn profit of: 
A. $16. B. $0. C. $4. D. $8.