About how much of the tax is paid by consumers in the form of higher prices?
A. $1.00
B. $1.35
C. $1.65
D. $2.00
B. $1.35
You might also like to view...
Tennessee emits sulfur dioxide that flows into North Carolina. In meeting sulfur emissions regulations, the Tennessee Valley Authority (TVA), which produces electricity, buys sulfur emission permits from Wyoming. The resulting hot spot problem is:
a. The citizens of Wyoming will experience higher sulfur emissions as a result of the emissions trading program. b. The citizens of Wyoming will experience lower sulfur emissions as a result of the emissions trading program. c. The citizens of Tennessee will pay more to reduce sulfur emissions than if the government used a command-and-control approach. d. The citizens of North Carolina will suffer higher emissions as a result of the emissions trading program.
Which of the following is a characteristic of perfect competition?
a. substantial barriers to entry b. homogeneous products c. few sellers d. each firm has significant control over the market
If the labor force in an economy is not fully employed, then
a. the economy is operating outside of its production possibilities frontier b. the economy is operating on its production possibilities frontier c. there must have been an increase in technology to compensate for the labor shortage d. the opportunity cost of producing more of one good is negative e. the economy is operating inside its production possibilities frontier
Which of the following statements or questions exemplify positive economics? (check all that apply)
a. The unemployment rate in Mexico is higher than in the United States. b. Should the unemployment rate in the United States be lower than in Mexico? c. When the government increases the minimum wage the unemployment rate will rise. d. The government ought to increase the minimum wage so that incomes rise. e. As the flight ticket prices fall, airlines experience a sharp increase in revenue.