Figure 4-22
Refer to . Suppose the same S and D curves apply, and a tax of the same amount per unit as shown here is imposed. Now, however, the buyers of the good, rather than the sellers, are required to pay the tax to the government. Now,
a.
the burden on buyers will be larger than in the case illustrated in .
b.
the burden on sellers will be smaller than in the case illustrated in .
c.
a downward shift of the demand curve replaces the upward shift of the supply curve.
d.
All of the above are correct.
c
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The current chair of the Board of Governors of the Federal Reserve is
A) Janet Yellen. B) John Snow. C) Alan Greenspan. D) Henry Paulson.
Which of the following explains why economists may disagree over normative issues?
a. They have different beliefs and values. b. They examine the same data to draw their conclusions. c. They need to disagree in order to publish their research findings. d. They often employ different statistical techniques when examining data. e. Some work only on microeconomic issues, while others focus exclusively on macroeconomic issues.
If the government wants to generate a surplus as a contraction measure, the most effective method of doing so is to
a. hold taxes and decrease spending. b. increase taxes and hold or decrease spending. c. decrease both spending and taxes. d. increase both taxes and spending.
The argument in favor of regulation for natural monopolies, externalities, and cases of imperfect information is:
A. market failure. B. overallocation of resources to production. C. insufficient economic profits. D. excessive entry of new firms.