When people alter behavior in response to taxes, which of the following is not true?
A. Excess burden is created.
B. Inefficiency occurs.
C. Tax shifting might occur.
D. The excise tax rate can increase.
Answer: D
You might also like to view...
Give some examples of oligopolistic behavior among the major fast food companies
What will be an ideal response?
With a monopolist's outcome, consumer surplus is:
A. lower than that of a competitive market. B. the same as that of a competitive market. C. higher than that of a competitive market. D. Any of these is possible.
There are not enough of four goods to satisfy the wants of people. For good A, this is true when the price is $100. This is true for good B at a price of $10, for good C at a price of $1, and for good D at a price of zero. Which situation reflects scarcity rather than shortage?
A. A B. B C. C D. D
Suppose Winston's annual salary as an accountant is $60,000, and his financial assets generate $4,000 per year in interest. One day, after deciding to be his own boss, he quits his job and uses his financial assets to establish a consulting business, which he runs out of his home. To run the business, he outlays $8,000 in cash to cover all the costs involved with running the business, and earns revenues of $150,000. What are Winston's implicit costs?
A. $64,000 B. $72,000 C. $4,000 D. $60,000