In the above figure, who pays the larger share of the tax?
A) buyers
B) sellers
C) Buyers and sellers each pay the same amount of the tax and each pays $10 per compact disc.
D) Buyers and sellers each pay the same amount of the tax, but the amount each pays is different than $10 per compact disc.
C
You might also like to view...
Total planned expenditures for domestically produced goods and services consist of
A) consumer spending, business spending, government spending, and net export spending. B) consumer spending, business spending, government spending, and import spending. C) consumer spending, business spending, and net export spending only D) government spending, business spending, and import spending only.
According to the Keynesian approach, a decrease in taxes
A) will decrease consumption, as the government will have to spend less. B) will not impact consumption, as most consumption is autonomous. C) will increase consumption exactly by the amount of the taxes. D) will increase consumption by an amount of less than the change in taxes.
Clarity Dence pays $375 for a used acoustic guitar from the local music instrument dealer. The dealer himself purchased it for $150. In principle, how would this exchange affect GDP?
A) Nothing happens to GDP, because the guitar is a used good. B) GDP increases by $150. C) GDP increases by $225. D) GDP increases by $375. E) GDP increases by $525.
Explain how the development of telecommunications has made cities like Bangalore and Omaha important locations for the development of service trade?