A sales tax is
A) a tax assessed on personal income.
B) a tax assessed on the prices paid for numerous goods and services.
C) a tax assessed on a public good.
D) the total tax base.
Answer: B
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How would the elimination of a sales tax affect the market for a product that had been subject to the tax?
A) The equilibrium price for the product would fall by less than the amount of the tax. B) The reduction in government revenue from the tax would be made up by an increase in property taxes. C) The supply of the product would become more elastic. D) The demand for the product would rise and the equilibrium price would fall by the amount of the tax.
Refer to Figure 9.7. After the policy was implemented, price became
A) $10. B) $30. C) $50. D) $70. E) between $50 and $70, but the price is uncertain because quantity can be any amount between 2000 and 4000.
Marginal factor cost is
A) the change in the value of output from using an additional unit of the factor. B) the cost of an additional unit of output. C) the total value of factor cost divided by the one cost that is being held constant. D) the cost of using an additional unit of an input.
Suppose your accountant told you that the economic profit you made last year was $50,000 . You would be pleased because the $50,000 represents your total revenue minus
a. implicit costs b. monetary costs c. explicit costs d. both implicit costs and explicit costs e. the difference between explicit and implicit costs