If the government places a $0.50 tax on an item for which demand is perfectly elastic
A) the entire tax will be paid by the consumer.
B) the tax will be split equally between the consumer and producer, with each paying exactly $0.25.
C) most of the tax will be paid by the consumer.
D) the entire tax will be paid by the producer.
D
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Which statement is true?
A. If the MRP of the last worker hired is higher than the wage rate, the firm has hired too few workers. B. The most important influence on a firm's demand for a factor of production is the demand for the final product. C. A firm will keep hiring more and more of a resource up to the point at which its MRP is equal to its price. D. All of the statements are true.
Which of the following is not associated with the monopoly market structure?
A. many sellers B. a single seller C. a unique product D. impossible entry into the market
Economists say that money serves as a medium of exchange, they mean that it is:
A. a way to keep wealth in a readily spendable form for future use. B. a means of payment. C. a monetary unit for measuring and comparing the relative values of goods. D. declared as legal tender by the government.
If the economy is on the steep part of the AS curve, the multiplier will be
A. infinite, as compared to zero if the economy is on the flat portion of the AS curve. B. constant regardless of where the economy is on the AS curve. C. larger than it would be if the economy were on the flat portion of the AS curve. D. smaller than it would be if the economy were on the flat portion of the AS curve.