Suppose a tax is imposed on a good. This will
A) increase the price paid by the buyer and decrease the price received by the seller.
B) increase the price paid by the buyer but leave the price received by the seller unchanged.
C) decrease the price received by the seller but leave the price received by the buyer unchanged.
D) increase the price received by the seller and decrease the price paid by the buyer.
A
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An upward shift of the planned expenditure curve resulting from a decrease in the price level corresponds to
A) aggregate demand shifting to the left. B) a movement up along the aggregate demand curve. C) a movement down along the aggregate demand curve. D) aggregate demand shifting to the right.
Assume someone organizes all farms in the nation into a single-price monopoly. As a result, the price consumers pay for food
A) does not change, that is, it remains constant. B) falls. C) rises. D) might rise or fall depending on whether the demand for food is elastic or inelastic. E) might rise or fall depending on whether the monopoly's marginal revenue curve lies above or below its demand curve.
The conclusion that a monopoly results in lower output and higher prices than perfect competition relies on the assumption that
A) the demand curve for a monopoly is horizontal. B) consumers are ignorant of the effects of monopoly. C) the costs of production are the same whether the industry is perfectly competitive or a monopoly. D) elasticity of demand varies along the market demand curve.
Kathryn chooses to go to college full-time rather than to work. Kathryn: a. is not part of the labor force
b. is part of the labor force and what economists call a discouraged worker. c. is part of the labor force, but not actively seeking work. d. is considered employed.