When a good is taxed, the tax burden
a. falls disproportionately on the side of the market that is more elastic
b. falls disproportionately on the side of the market that is more inelastic.
c. falls disproportionately on the side of the market that is closer to unit elastic.
d. is not impacted by the relative elasticities of supply and demand.
b
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When a per-unit tax is levied on a goods market in which supply is not perfectly inelastic but such a tax nevertheless does not give rise to any deadweight loss, consumers are made no worse off by the imposition of the tax.
Answer the following statement true (T) or false (F)
A legal claim against a firm that usually entitles the owner of the claim to receive a fixed annual coupon payment, plus a lump-sum payment at some future date, is known as
A) a bond. B) a share of common stock. C) a share of preferred stock. D) a reinvestment coupon.
Returns to scale is a ______ concept because ______.
A. short-run; it's related to the law of diminishing marginal returns B. short-run; it deals with varying the level of one input while holding other inputs constant C. long-run; a firm can change its output level only in the long run D. long-run; it refers to changes in all of the firm's inputs
We can increase the United States' rate of economic growth by
A. devoting more output to capital goods. B. devoting more output to improving our technology. C. devoting more output to improving the quality of our labor force. D. all of the choices are true.