Refer to the graph shown. Given the same supply elasticity, the burden of a 10 percent tax would be borne the most by the consumer in segment:
A. DE.
B. CD.
C. BC.
D. AB.
Answer: A
You might also like to view...
As a result of losing his job, Uncle Roy dropped his cable TV service and instead bought a new iPod. For Uncle Roy,
A) cable is an inferior good and the iPod is a normal good. B) cable is a normal good and the iPod is an inferior good. C) both cable and the iPod are normal goods. D) both cable and the iPod are inferior goods. E) cable and the iPod are complementary goods.
When there is a negative externality, the marginal private cost of production ________ the marginal social cost of production
A) eliminates B) is less than C) is equal to D) is greater than
Diseconomies of scale exist over the range of output for which the long-run average cost curve is:
a. constant. b. falling. c. rising. d. none of these.
Which of the following is true?
a. Poor countries are unable to ignite the growth process unless they receive financial aid from richer countries. b. Countries that fail to adopt institutions and policies supportive of trade, entrepreneurial discovery, and private investment will remain poor in the foreseeable future. c. Countries that lack an abundance of natural resources have been unable to grow and achieve high income levels. d. Countries with a large population relative to their land area are destined to remain poor.