How can we anticipate the proportion of a newly imposed unit excise tax that consumers will pay?
A) Consumers will pay most of the tax whenever their demand for a product is relatively unresponsive to price changes.
B) Consumers will always pay 100 percent of an excise tax.
C) Consumers will pay most of the tax whenever their demand for the product is very price sensitive.
D) Since producers always pay 100 percent of an excise tax, we know consumers will not pay any of the tax.
A
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Which of the following is true of the Golden Age of fiscal policy of the 1960s? a. Fiscal policy was used to prevent output from expanding in 1964
b. Lyndon B. Johnson cut income tax rates to reduce inflationary pressures in the economy c. A tax cut was introduced to increase savings and unemployment. d. A tax cut increased disposable income and consumption. e. The unemployment rate rose by 5 percent for the first time in seven years
Prior to an expanded child care subsidy program in Illinois, the labor force participation rate of single mothers in Illinois was 45% and in Wisconsin was 48%. After Illinois expanded its child care subsidy program, the participation rate increased to 58% in Illinois and to 51% in Wisconsin. The expanded child care program in Illinois is estimated to increase labor force participation of single mothers by how much according to a difference-in-differences estimator?
A. 7% B. 13% C. 6% D. 3% E. 10%
Mia always carries $50 in her purse to pay for groceries. This is an example of the
A. precautionary demand for money. B. asset demand for money. C. transactions demand for money. D. wealth demand for money.
Normal goods will experience decreasing demand when incomes decrease.
Answer the following statement true (T) or false (F)