The burden of a luxury tax falls
a. more on the rich than on the middle class.
b. more on the poor than on the rich.
c. more on the middle class than on the rich.
d. equally on the rich, the middle class, and the poor.
c
You might also like to view...
If General Motors cuts back production on the Hummer because of high gasoline prices what should you expect to happen to the average fixed cost of production? What about the average total cost?
What will be an ideal response?
Consider three pricing strategies that the firm can pursue:
a. optimal two-part tariff pricing b. perfect price discrimination c. single-price monopoly pricing. Of these three strategies, which is least likely to benefit society as a whole? A) single-price monopoly pricing because there are mutually beneficial trades (between consumers and seller) that are not exploited B) Both perfect price discrimination and two-part tariff pricing do not benefit society because the entire consumer surplus is extracted by the producer. C) perfect price discrimination because those willing to pay higher prices are forced to subsidize those who are not D) a two-part tariff pricing because consumers have to pay a fixed fee in addition to a per-unit price
If the Federal Reserve sells $1,500 in bonds and the resulting money supply change is $7,500, what is the required reserve ratio?
a. 5.0 b. 0.2 c. 0.1 d. 0.4 e. 0.8
Fracking, a technique for breaking up (or fracturing) rock deep under the earth to release natural gas, has
a. increased the price of natural gas. b. decreased the supply of natural gas. c. contaminated natural gas so it is no longer a "clean" fuel. d. decreased the price of natural gas.