The supply of oil is more elastic than the demand for oil. If oil is taxed $10 per barrel, how will the tax be divided between the buyers and sellers?
A) The sellers will pay more of the tax than the buyers.
B) The buyers will pay more of the tax than the sellers.
C) The sellers and buyers will split the tax evenly.
D) The sellers will pay the entire tax.
B
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The tax cuts and entitlement program expansions of the 1980s led to such ________ federal deficits in the 1990s that fiscal policy ________ for smoothing-out business cycle fluctuations
A) small, again became the preferred tool B) small, was all but abandoned C) large, again became the preferred tool D) large, was all but abandoned
Specialization allows for
A) more consumption for all trading partners. B) more consumption for the trading partner with the comparative advantage. C) more consumption for the trading partner with the absolute advantage. D) equal consumption among trading partners.
If retail managers are ordering extra merchandise from their wholesale distributors, then it is probably true that
a. total output is greater than total spending. b. price levels are decreasing. c. inventory levels are increasing. d. inventory levels are decreasing.
Which of the following best describes the "education premium"?
A. The added pay for getting a higher level of education B. The added cost of getting a higher level of education C. The added benefits for society as a whole from a person getting a higher level of education D. The increase in average wages, in inflation-adjusted dollars, over time