A tax on a good
a. raises the price that buyers effectively pay and raises the price that sellers effectively receive.
b. raises the price that buyers effectively pay and lowers the price that sellers effectively receive.
c. lowers the price that buyers effectively pay and raises the price that sellers effectively receive.
d. lowers the price that buyers effectively pay and lowers the price that sellers effectively receive.
b
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The two standard ways of defining poverty thresholds are
a. percentage of median income and basic needs b. number of poor and quintiles c. unearned income of the poor and and welfare d. ratio of the poor's wealth and ratio of the poor's income e. below minimum wage income and above minimum wage income
The impact of a decrease in the marginal tax rate on labor supply will be larger as the tax elasticity of supply gets smaller.
Answer the following statement true (T) or false (F)
Long-run economic profit does not exist for fixed factors like land because
A) bidding drives up the price of the factor until no economic profit exists. B) there is no market for such factors. C) these factors have L-shaped isoquants. D) these factors will earn economic profits.
If there is a positive relationship between two variables,
A) the graph of the relationship will be downward sloping. B) the graph of the relationship will be upward sloping. C) the slope of the line graphing the relationship will be negative. D) Both answers A and C are correct. E) Both answers B and C are correct.