Figure 4-9
Refer to . The market for gasoline was initially in equilibrium at point b and a $.40 excise tax is illustrated. Which of the following states the actual burden of the tax?
a.
$.20 for buyers and $.20 for sellers
b.
$.30 for buyers and $.10 for sellers
c.
The entire $.40 falls on sellers.
d.
The entire $.40 falls on buyers.
a
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If the supply of automobiles becomes more inelastic, then a tax on automobiles is
A) paid more by the buyers after the change than before. B) paid more by the sellers after the change than before. C) always split evenly between the buyers and the sellers. D) paid more by the government after the change than before. E) always paid entirely by the buyers.
Normal profit is a(n) ________ cost because ________
A) implicit; it represents the cost of not running another firm B) explicit; a firm must pay income taxes on its profit C) implicit; it represents the cost of economic depreciation D) accounting; wages are considered an explicit cost E) depreciation; the equipment the firm owns wears out over time
Price Per YardQuantity supplied$2025$?15 Refer to the table, which shows part of the weekly supply schedule for fall leaf-raking in a certain neighborhood. According to the laws of economics, which of the following could be the missing number?
A. 25 B. 0 C. 15 D. 35
Which of the following is least likely to be considered a firm in an imperfectly competitive industry?
A. Ohio Bell Telephone Company B. the only locally owned and operated bank in Severn, MD C. a wheat farmer in Kansas D. a Burger King in Pittsburgh, PA