When a tax is imposed, some of the lost surplus becomes tax revenues and the rest is:

A. transferred to consumers.
B. transferred to producers.
C. transferred to recipients of government services.
D. simply lost.


D. simply lost.

Economics

You might also like to view...

When providing a good involves assembling several parcels of contiguous land, private individuals may encounter difficulty negotiating the purchase of those parcels

Indicate whether the statement is true or false

Economics

Suppose in the United States, the opportunity cost of producing a motor engine is 4 auto bodies. In Canada, the opportunity cost of producing a motor engine is 2 auto bodies

a. What is the opportunity cost of producing an auto body for the United States? b. What is the opportunity cost of producing an auto body for Canada? c. Which country has a comparative advantage in the production of auto bodies? d. Which country has a comparative advantage in the production of motor engines?

Economics

Precisely what is meant by economic income?

What will be an ideal response?

Economics

What does it mean to say that a perfectly competitive firm is a price taker? Can't a firm set any price it chooses?

What will be an ideal response?

Economics