Taxes affect market participants by increasing the price paid by the buyer and received by the seller
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose we have an economy in which G = 1100, t = 0.26, Y = 3800, and YN = 4000. The natural employment deficit is
A) 60. B) 200. C) 840. D) 286. E) -112.
In the above figure, market equilibrium at point E yields the quantity X. The quantity X* is socially optimal amount. The government can achieve the optimal outcome by
A) setting the price at P1. B) establishing a tax of P3 - P1 per unit of the good sold. C) establishing a tax of P3 - P2 per unit of the good sold. D) setting the price at P4.
Transfer payments include all of the following except
A. Social Security benefits for retirees. B. A church-run thrift store for the poor. C. Federal crop assistance for farmers. D. Government-subsidized loans for students.
All of the following are problems associated with price ceilings except
a. chronic excess demand b. an eventual decline in the number of suppliers c. the need to use ration coupons to purchase the good d. chronic excess supply e. landlords failing to maintain rent-controlled properties adequately