In the above figure, the tax incidence is
A) that most of it is paid by the buyers.
B) that most of it is paid by the sellers.
C) split equally so that the buyers and sellers pay the same amount.
D) that neither the buyers nor the sellers pay it.
C
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For a firm in monopolistic competition, innovation and product development are
A) senseless because economic profit is always zero in the long run. B) necessary in order to have a chance of earning at least a short-run economic profit. C) inconsequential because each firm produces a different product. D) necessary to allow new firms to enter. E) uncommon because other firms already produce similar products.
As a candidate for president of the United States, Barak Obama was an ardent supporter of outsourcing
Indicate whether the statement is true or false
For each of the following changes, what happens to the real interest rate and output in the long run, after the price level has adjusted to restore general equilibrium? How would the results differ, if at all, between the classical and Keynesian
model? Draw a diagram for each part to illustrate your result. (a) Wealth rises. (b) Money supply rises. (c) The future marginal productivity of capital increases. (d) Expected inflation declines. (e) Future income declines.
Compared to other investments such as bonds, historically a diverse set of stocks held over a lengthy time period (for example, 30 or 40 years) has yielded a
a. low average real rate of return, and the variation in that return has been extremely high. b. high average real rate of return, and the variation in that return has been relatively small. c. low average real rate of return, and the variation in that return has been relatively small. d. high average real rate of return, and the variation in that return has been extremely high.