Suppose a $1 tax is placed on a good. The more elastic the supply of the good, the
A) larger the increase in the after-tax price.
B) smaller the decrease in the quantity sold.
C) less of the tax will be paid by the buyers.
D) more of the tax will be paid by the sellers.
A
You might also like to view...
The slope of the IS curve will be flatter the __________ is the sensitivity of investment to a unit change in the interest rate and the __________ is marginal propensity to save
A) greater; larger B) greater; smaller C) less; larger D) less; smaller
The curve that reflects the view that when tax rates are too high, lowering them not only creates greater incentive for suppliers to increase production, but ends up generating higher tax revenues, is known as the:
a. Phillips curve. b. Laffer curve. c. Engel curve. d. Rational expectations curve. e. consumption curve.
In economics, the term for a person who reduces transaction costs by arranging trades for buyers and sellers is
a. an exchange broker. b. a middleman. c. a transactions specialist. d. an opportunity finder.
Which of the following is an example of cryptocurrency?
A) U.S. dollar B) Japanese yen C) Euro D) Bitcoin