An excise tax levied on a product will impose a smaller relative burden on consumers (and a larger relative burden on sellers) when:
a. the supply of the product is relatively inelastic.
b. the supply of the product is relatively elastic.
c. the demand for the product is relatively elastic.
d. either a or c is true.
d
You might also like to view...
The interest rate is the price borrowers pay to borrow money.Key interest rates are controlled by the Federal Reserve System.If the Federal Reserve acts to reduce interest rates, economists would expect the quantity of money demanded to
A. increase. B. decrease. C. not change. D. not change, although the demand schedule itself will shift outward.
If, over time, a greater proportion of the labor force is comprised of middle-aged individuals, one would expect the natural rate of unemployment to rise
a. True b. False Indicate whether the statement is true or false
An income transfer contains less fiscal stimulus than an increase in government spending of the same size.
Answer the following statement true (T) or false (F)
Socialists saw state socialism as:
A. the final stage of socialism. B. a state following pure socialism. C. a transition stage to pure socialism. D. a preliminary state leading to capitalism.