When a good is taxed, the burden of the tax
a. falls more heavily on the side of the market that is more elastic.
b. falls more heavily on the side of the market that is more inelastic.
c. falls more heavily on the side of the market that is closer to unit elastic.
d. is distributed independently of relative elasticities of supply and demand.
b
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The strength of the demand for a resource depends on the following factors, except
A. supply of the resource. B. demand for the product the resource helps to produce. C. productivity of the resource. D. price of the product the resource helps to produce.
The additional benefit that Marvin gets from being vaccinated against the flu is known as the
A) external benefit. B) marginal private benefit. C) private cost. D) social cost. E) marginal social benefit.
Which of the following will cause a cartel to be unstable?
a. a small number of firms b. high barriers to entry c. sharply differentiated products d. lack of legal constraints
The difference between a firm's total revenues and total costs when all explicit and implicit costs are included is the firm's:
a. economic profit. b. accounting profit. c. opportunity cost of capital. d. long-run average total cost.