The economic incidence of the tax means who:
A. is legally obligated to pay the tax to the government.
B. actually loses more surplus as a result of the tax.
C. benefits the most from of any sort of tax.
D. gains surplus as a result of the government redistributing tax revenue.
B. actually loses more surplus as a result of the tax.
You might also like to view...
In a perfectly competitive market with identical firms, all surplus will be consumer surplus in long run equilibrium.
Answer the following statement true (T) or false (F)
Gross domestic product
A) includes all the goods and none of the services produced in an economy in a given time period. B) measures the value of the aggregate production of goods and services in a country during a given time period. C) measures the value of labor payments generated in an economy in a given time period. D) is generally less than federal expenditure in any time period.
If a firm knew every consumer's willingness to pay and could prevent arbitrage it could charge every consumer a different price. This practice is known as
A) first-degree transfer of consumer surplus, or perfect price discrimination. B) first-degree price discrimination, or perfect price discrimination. C) maximization of producer surplus, or perfect price discrimination. D) first-degree exploitation, or perfect price discrimination.
In the absence of government price supports, why is the production of wheat a good example of perfect competition?
What will be an ideal response?