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.
a
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Protectionism through _________ implementation makes imports more expensive for consumers and discourages imports.
a. quote b. tariff c. nontariff barrier d. standards
The rate at which a consumer is willing to trade off one good for another is called the __________
Fill in the blank(s) with correct word
If customers demand to be served by white wait-staff, it is legal for restaurants to hire only whites because it is a "business necessity."
Answer the following statement true (T) or false (F)
Assume that the lost output due to tax distortions is proportional to the square of the tax rate
If the average cost of the distortion created by taxes is currently $1000, and the tax rate is increased from 40% to 50%, the average cost of the distortion created by taxes will increase to A) $383.33. B) $450.00. C) $640. D) $1562.50.