A tax wedge:
A. refers to the difference in the price the buyer pays and the price the seller keeps.
B. only occurs in markets when the tax is placed on sellers.
C. only occurs in markets when the tax is placed on buyers.
D. only occurs in markets when taxes are placed on large corporations.
A. refers to the difference in the price the buyer pays and the price the seller keeps.
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The above table shows the marginal benefit from submarines for the only two citizens of a country. Suppose submarines cost $175 a piece. Politician A proposes 2 submarines while politician B proposes 4
Assuming that both Bobby and Katie pay one half of the resulting taxes and neither is rationally ignorant, which politician will win the election? A) A because she offers voters a lower tax bill. B) A because she offers voters a greater net benefit. C) B because she offers voters a greater total benefit. D) B because she offers voters more submarines.
In the above figure, the competitive unregulated equilibrium is producing and consuming ________ vaccinations per year at a price of ________
A) 30 thousand; $40 B) 30 thousand; $30 C) 30 thousand; $20 D) 50 thousand; $30
Large companies with good credit ratings tend to rely on __________ for short-term financing
A) the commercial paper market B) private placements C) finance companies D) equity
Which of the following is NOT a service?
A) physical labor purchased by a producer B) things purchased by a consumer that do not have physical characteristics C) a diamond used in an engagement ring D) tasks performed by someone else