In Figure 33.4, what is the burden of the tax on employers?
A. The wage increase of W5 - W2.
B. The wage increase of W5 - W3.
C. The wage increase of W5 - W1.
D. The wage increase of W3 - W2.
Answer: B
You might also like to view...
Proprietorships, partnerships, and corporations are the primary forms of
A) industries. B) business organization. C) principal-agent relationships. D) command-incentive relationships.
Consider the market for cable television, a natural monopoly, shown in the figure above. If the regulator imposes an average cost pricing rule, the firm provides service to
A) 3.5 million households. B) 6 million households. C) 10.5 million households. D) 12.5 million households.
A supply curve:
a. has a negative slope. b. is based on the assumption of a stable demand curve. c. illustrates the negative relationship between price and quantity supplied. d. illustrates the positive relationship between price and quantity supplied. e. shifts about in random fashion.
The aggregate demand curve is downward sloping
a. True b. False Indicate whether the statement is true or false