What determines the proportion of a unit excise tax that will be passed on to consumers in the form of higher prices?
A) the nature of the projects funded by the tax
B) the number of additional taxes that consumers have to pay
C) the popularity of the tax
D) the degree to which quantity demanded and supplied of the good respond to price changes
Answer: D
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The problem of "scarcity" applies
A) only in industrially developed countries because resources are scarce in these countries. B) only in underdeveloped countries because there are few productive resources in these countries. C) only in economic systems that are just beginning to develop because specialized resources are scarce. D) to all economic systems, regardless of their level of development.
(C + S + T) most closely approximates
A) personal income. B) personal disposable income. C) national income. D) net national product. E) gross national product.
Bonds with ________ tend to have lower interest rates than bonds with ________
A) high liquidity; low liquidity B) high default risk; low default risk C) longer maturity; shorter maturity D) high tax burdens on their interest; low tax burdens on their interest
The social costs of imperfect competition are known as
A) dead-weight loss. B) consumer surplus. C) producer surplus. D) none of the above.