Economists have shown that the burden of a tax is the same whether the tax is collected from the buyer or the seller. Why, then, are gasoline and cigarette taxes imposed on sellers?
A) It is more difficult for buyers to keep track of their purchases, and for the government to verify that the right of amount of tax revenue is collected.
B) Sellers are more honest than buyers.
C) The demand for both gasoline and cigarettes is very elastic.
D) The Equal Protection Clause of the U.S. Constitution prohibits the government from imposing taxes like these on buyers.
A
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For competitive firms, the curve that represents the value of marginal product of labor is the same as the demand for labor curve
a. True b. False Indicate whether the statement is true or false
Which of the following would not be considered a "leisure" activity by economists?
A. Cleaning the bathroom floor B. Making a work call. C. Making dinner D. Going skiing
Headline inflation is:
A. used only by the media for discussing inflation. B. limited measure of inflation in the economy. C. core inflation with the prices of food and gasoline added in. D. not a generally accepted measure of inflation.
An economist looks at rent controlled prices as an example of a
A. engaged price. B. price floor. C. price ceiling. D. equilibrium.