When government imposes a per-unit tax on a product, the net price producers actually receive for the product (after taxation) typically:
A. decreases by the amount of the per-unit tax.
B. increases by less than the amount of the per-unit tax.
C. increases by the amount of the per-unit tax.
D. decreases by less than the amount of the per-unit tax.
Answer: D
You might also like to view...
Which of the following events will decrease the domestic real interest rate in an open economy?
A. A decrease in the domestic saving. B. An increase in the perceived riskiness of investing in the domestic economy. C. An increase in domestic saving. D. An decrease in net capital inflow.
What is a Nash equilibrium? How is a Nash equilibrium different from a dominant strategy equilibrium?
What will be an ideal response?
With a 10% reserve requirement ratio, a $100 deposit into New Bank means that the maximum amount New Bank could lend is
A) $90. B) $100. C) $10. D) $110.
Which of the following DOES NOT contribute to the market power of a firm?
A) number of available substitutes B) the color of the product C) legal protections D) the number of firms in the market