Using supply and demand analysis, which of the following is true?
A. The burden of a tax on production cannot be determined on the basis of who actually pays the tax.
B. The burden of a tax on production is always split evenly between consumers and sellers.
C. Consumers bear the entire burden of a per unit tax on production.
D. Sellers bear the entire burden of a per unit tax on production.
Answer: A
You might also like to view...
Physical currency is ________ popular than e-cash, ________
A) less; and both are portable and recognizable B) more; and both are portable and recognizable C) more; but only physical currency is portable and recognizable D) more; and both are portable, untraceable and anonymous E) less; but both are portable, untraceable and anonymous
The term oligopoly is highly ambiguous in the absence of
A) a clear and defensible definition of the product. B) a clear price structure. C) a definition of marginal cost. D) accounting rules adequately defining net revenue. E) clear distinctions between competitive and noncompetitive industries.
Price discrimination
A) eliminates the producer surplus. B) turns consumer surplus into producer surplus. C) decreases output below the profit-maximizing level. D) lowers a monopoly's economic profit.
An unregulated industry has a Lerner index of zero. These numbers:
A. reveal that social welfare would be improved by regulating the firms. B. are consistent with the industry being monopolistically competitive. C. reveal that social welfare would be improved by regulating the firms and are consistent with the industry being monopolistically competitive. D. are consistent with the industry being perfectly competitive.