The sum of the revenue collected by the tax and the excess burden created by the tax is the
A. gross revenue.
B. deadweight loss.
C. total tax burden.
D. tax incidence.
Answer: C
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The mean (average) U.S. family income in 2012 was approximately
A) $15,000. B) $71,000. C) $51,000. D) $100,000.
Necessities, such as food and shelter, are product purchases that consumers are sensitive to, so the demand is elastic for these goods.
Answer the following statement true (T) or false (F)
Examples of comparative advantage often begin with two countries that each produce the same two goods
Each country is then shown to have a comparative advantage in producing the good it can produce at a lower opportunity cost, and specializes in the production of the good for which it has a comparative advantage. How do these examples prove that both nations are made better off as a result of trade than they would be without trade?
When marginal cost is below average total cost:
a. total cost is falling. b. total cost is rising. c. average total cost is falling. d. average fixed cost is rising. e. total variable cost is falling.