The total burden of a tax is $10,000 and the tax revenue from this tax is $8,000. The excess burden of this tax is
A. $2,000.
B. $8,000.
C. $10,000.
D. $18,000.
Answer: A
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Which one of these firms would be an oligopolist?
A. Proctor & Gamble B. A family farm C. A McDonald's restaurant in Manhattan D. The only dentist in Hendry County, Florida
Monetarists accept the idea that velocity is not constant; nonetheless, they believe that it is highly:
A. variable. B. unpredictable, ill-behaved, and independent of money supply. C. unpredictable, well-behaved, and dependent of money supply. D. predictable.
The real exchange rate:
A. uses the price level in each country to convert the exchange rate into a value that is in "real" terms. B. expresses the value of goods in one country in terms of the same goods in another country. C. is the nominal exchange rate adjusted for purchasing power parity. D. All of these statements are true.
A fundamental principle of international trade is that
A. a country could never have lower resource costs than other countries in the production of ALL goods and services. B. a country could never have lower opportunity costs than other countries in the production of ALL goods and services. C. two nations could both have a comparative advantage over each other in production of the same good. D. the world gains from trade because trade allows production of goods and services to move to nations with the lowest resource cost.