The total burden of the tax is
A. the excess burden created by the tax minus the revenue collected from the tax.
B. the sum of the revenue collected by the tax and the excess burden created by the tax.
C. the revenue collected from the tax minus the excess burden created by the tax.
D. the ratio of the revenue collected and the excess burden created by the tax.
Answer: B
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An example of adverse selection is a. purchasing a new car sight unseen based on the recommendation of a neighbor. b. high health-insurance premiums resulting from the poor health of people who buy policies
c. suppliers who charge more for better quality clothing than for lower quality clothing. d. being talked into buying a low-quality item because the price is lower.
Since the late 1970s, economic growth has
a. occurred at a rapid pace compared to the period 1950-1973 b. improved living standards across the entire population c. maintained approximately constant living standards across the entire population d. improved the living standards of less-skilled workers while highly skilled workers have become worse off e. improved the living standards of highly skilled workers while less-skilled workers have become worse off
When externalities are present, reaching an efficient outcome is especially difficult when the number of interested parties is large
a. True b. False Indicate whether the statement is true or false
market demand schedule
What will be an ideal response?