If the federal government placed a 50 cent per pack excise tax on cigarette manufacturers, and if as a result, the price to consumers of a pack of cigarettes went up by 40 cents, the:
A. actual burden of this tax falls mostly on consumers.
B. actual burden of this tax falls mostly on manufacturers.
C. actual burden of the tax would be shared equally by producers and consumers.
D. tax would clearly be a progressive tax.
Answer: A
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How are the slope of a production possibilities frontier and the opportunity cost of the goods related?
A. The slope is a graphical representation of the cost of expanding production of both goods. B. The slope is a graphical measure of the growth rate of the economy. C. The slope is a graphical representation of the cost of decreasing unemployment. D. The slope is a graphical representation of the rate of trade-off between the goods. E. The slope is a graphical representation of the cost of economic growth in the economy.
Historians generally agree that the railroads
(a) were absolutely essential for industrial growth in the 19th century. (b) were an indispensable "leading sector." (c) were our first "giant" enterprises. (d) provided a "social saving" of 90% or more.
In economics, the term "shortage" means that the quantity demanded is greater than the quantity supplied at the existing price
a. True b. False Indicate whether the statement is true or false
A market demand curve is
a. the sum of the demand curves of individuals in a market b. the sum of individuals who make demands c. horizontal at the market price d. vertical at the market price e. upward sloping