Sellers of a good bear the larger share of the tax burden when a tax is placed on a product for which the (i) supply is more elastic than the demand. (ii) demand in more elastic than the supply. (iii) tax is placed on the sellers of the product. (iv) tax is placed on the buyers of the product
a. (i) only
b. (ii) only
c. (i) and (iv) only
d. (ii) and (iii) only
b
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One way that government can increase the production of goods that have external benefits is to
A) tax the activity. B) subsidize the activity. C) use marketable permits. D) Both answers B and C are correct.
Any change in price along a perfectly inelastic demand curve produces:
a. greater change in the quantity demanded. b. less change in the quantity demanded. c. no change in the quantity demanded. d. infinite change in the quantity demanded.
TV crime shows illustrate the prisoner's dilemma when the:
A. police interview suspects in the same room. B. police interview suspects in different rooms. C. judge ponders the sentence for the crimes. D. prisoners go to prison for the first time.
An increase in the minimum wage will tend to cause which of the following to occur?
A) an increase in the size of the surplus of labor B) a leftward shift in the demand for labor C) a rightward shift in the supply of labor D) a reduction in the unemployment rate