Tax incidence is:
A. the difference between what the buyers pay and what the sellers receive in a market where taxes are present.
B. the relative tax burden borne by buyers and sellers.
C. the generated revenue that comes from taxes in markets.
D. the difference between the tax revenue generated and the value of deadweight loss caused by the imposition of the tax.
B. the relative tax burden borne by buyers and sellers.
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Suppose that an industrial accident at a factory destroys a significant number of high-speed blenders that bartenders use to mix frozen drinks. What will happen in the labor market for bartenders?
a. Both wages and employment will increase. b. Both wages and employment will decrease. c. Wages will increase, and employment will decrease. d. Wages will decrease, and employment will increase.
Answer the following statement(s) true (T) or false (F)
1. If the demand curve for a good is relatively flat, a small change in price results in a relatively large change in quantity demanded 2. If safer cars reduce a driver's chance of dying in an accident, then there will be fewer driver fatalities. 3. If one wants to apply the theoretical side of economics by examining data, they use a family of statistical techniques called econometrics. 4. A sales tax causes the demand curve to shift upwards by the amount of the tax. 5. As defined by economists, the supply of corn refers to the number of bushels of corn that farmers bring to the market.
Another name for a "flat-rate tax" in which the same tax rate applies to all income earners is a
A) proportional tax. B) progressive tax. C) regressive tax. D) passive tax.
Dale is a guitar teacher and Terrence is a tile layer. If Dale teaches Terrence's daughter to play the guitar in exchange for Terrence tiling Dale's kitchen floor,
a. only Dale is made better off by trade. b. only Terrence is made better off by trade. c. both Dale and Terrence are made better off by trade. d. neither Dale nor Terrence are made better off by trade.