The actual burden of a tax
a. falls most heavily on the side of the market that is more elastic.
b. falls most heavily on the side of the market that is more inelastic.
c. falls most heavily on the side of the market that is closest to unitary elasticity.
d. is distributed independently of relative elasticities of supply and demand.
B
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Which type of unemployment is a permanent and healthy phenomenon in a dynamic economy?
A) cyclical B) avoidable C) structural D) frictional E) unavoidable
Samantha goes to the grocery store to make her monthly purchase of ginger ale. As she enters the soft drink section, she notices that the price of ginger ale has increased 15 percent, so she decides to buy some peppermint tea instead. To which problem in the construction of the CPI is this situation most relevant?
a. substitution bias b. introduction of new goods c. unmeasured quality change d. income effect
Cyclical unemployment occurs:
A. because the government labels some people who aren't really in the labor force as unemployed. B. with economic fluctuations; it increases during bad times and decreases during good times. C. naturally during the normal workings of an economy, as people change jobs, move across the country, etc. D. because of a mismatch between the jobs that are available in the economy and the skills of workers seeking jobs.
There is an externality present only when
A) private costs equal social benefits. B) private benefits equal social benefits. C) private costs or benefits diverge from social costs or benefits. D) private costs equal social costs.