A tax wedge:
A. only occurs in markets when taxes are placed on large corporations.
B. only occurs in markets when the tax is placed on buyers.
C. refers to the difference in the price the buyer pays and the price the seller keeps.
D. only occurs in markets when the tax is placed on sellers.
Answer: C
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a. True b. False Indicate whether the statement is true or false
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A. are primarily manufacturing employees who have been displaced by machinery. B. are comprised mainly of the cyclically unemployed, laid off because of recession. C. are people who have stopped looking for work because they believe they will not be able to find employment. D. are those workers who leave regular employment and work in the underground economy. E. are temporarily between jobs.
Recall the Application. If the decrease in price of illegal drugs is primarily due to a change in demand, the equilibrium quantity of drugs
A) will increase. B) will decrease. C) will not change. D) may or may not change.
Total planned expenditure is composed as
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