In the case of a specific tax, tax incidence is independent of who pays
A) only when supply and demand elasticities are not constant.
B) only when the tax is collected from consumers.
C) in most but not all cases.
D) in all cases.
D
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Consumption spending is $5 million, planned investment spending is $8 million, unplanned investment spending is $2 million, government purchases are $10 million, and net export spending is $2 million. What is GDP?
A) $15 million B) $23 million C) $25 million D) $27 million
An individual bank can create deposits to the extent of its __________.
Fill in the blank(s) with the appropriate word(s).
A farmer is deciding whether or not to add fertilizer to his or her crops. If the farmer adds 1 pound of fertilizer per acre, the value of the resulting crops rises from $80 to $100 per acre. According to marginal analysis, the farmer should add fertilizer if it costs less than:
A. $12.50 per pound. B. $20 per pound. C. $80 per pound. D. $100 per pound.
What is the marginal rate of substitution and how does it relate to an indifference curve?
What will be an ideal response?