The incidence of an excise tax
a. refers to who really pays it
b. always falls on suppliers
c. is equally divided between demanders and suppliers
d. is determined by the number of demanders
e. is decided by the government when the tax is imposed
A
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According to the scenario above, in which of the following groups are all the people frictionally unemployed?
A) Rita and Darrelo B) Chris, Rita, and Thorton C) Rita and Jung D) Darrelo and Jung E) Jung
Who are the only ones not affected by a Pigouvian tax when a negative externality exists in a market?
A. Producers B. Consumers C. Those affected by the externality D. All of these groups are affected when it becomes internalized.
Allocations that are inefficient are sometimes chosen by policy makers as a way of improving fairness.
Answer the following statement true (T) or false (F)
Protectionism may fail to reduce a current account deficit because it
A. depreciates the dollar. B. invites retaliation, which hurts exports. C. encourages exports. D. does not reduce imports.