The excess burden of a tax is $5,000 and the tax revenue from this tax is $15,000. The total burden of this tax is
A. $3,000.
B. $5,000.
C. $10,000.
D. $20,000.
Answer: D
You might also like to view...
Profit equals total revenue minus total cost
a. True b. False Indicate whether the statement is true or false
In the ISLM framework, an expansionary fiscal policy causes aggregate output to ________ and the interest rate to ________, everything else held constant
A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase
The velocity of money increases with a _____, other things constant
a. fall in the inflation rate b. rise in the inflation rate c. rise in the employment rate d. fall in the exchange rate e. rise in the real interest rate
Which of the following statements applies to a purely competitive producer?
A. It will not advertise its product. B. In long-run equilibrium it will earn an economic profit. C. Its product will have a brand name. D. Its product is slightly different from those of its competitors.