The incidence of a per-unit tax on a good is identical for buyers and sellers of the good if:
A) the buyers and sellers of the good are equally sensitive to price changes.
B) the elasticity of market demand exceeds the elasticity of market supply.
C) the market supply curve is flatter than the market demand curve.
D) the market demand curve is horizontal.
A
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If the government could raise taxes on one good, which product should the government increase tax rates in order to raise tax revenue?
a. Cigarettes b. Alcohol c. Sodas d. None of the above
The clearest sign of economic growth is a(n)
a. increase in nominal GDP. b. increase in real GDP. c. decrease in nominal GDP. d. increase in nominal GDP.
Which statement is true?
A. College graduates earn much more than high school graduates mainly because of what they learn in college. B. The bulk of all property income goes to the middle class. C. Most government transfer payments go to the poor. D. The bulk of all property income goes to the rich.
Dumping is defined as
A. selling a good abroad at prices below its cost of production or below the price charged in the home market. B. exporting goods that are sources of pollution. C. exporting goods that are of inferior quality. D. selling a good abroad at prices above the costs of the firms in the foreign countries.