Suppose a tax of $1 per unit is imposed on a good. The more elastic the demand for the good, other things equal,
a. the larger is the decrease in quantity demanded as a result of the tax.
b. the smaller is the tax burden on buyers relative to the tax burden on sellers.
c. the larger is the deadweight loss of the tax.
d. All of the above are correct.
d
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A cartel usually has a collusive agreement to
A) restrict output. B) boost output. C) lower the price. D) increase the number of firms in the industry.
A binding minimum wage raises the incomes of some workers, but it lowers the incomes of workers who cannot find jobs
a. True b. False Indicate whether the statement is true or false
In the basic aggregate expenditures model, a decrease in autonomous expenditure
A. increases equilibrium output. B. reduces equilibrium output. C. reduces potential output. D. increases potential output.
National income, plus income received but not earned, minus income earned but not received, is
a. personal income b. personal disposable income c. pre-tax profit d. net national product e. capital depreciation