How is the burden of a tax divided? (i) When the tax is levied on the sellers, the sellers bear a higher proportion of the tax burden. (ii) When the tax is levied on the buyers, the buyers bear a higher proportion of the tax burden. (iii) Regardless of whether the tax is levied on the buyers or the sellers, the buyers and sellers bear an equal proportion of the tax burden. (iv) Regardless of
whether the tax is levied on the buyers or the sellers, the buyers and sellers bear some proportion of the tax burden.
a. (i) and (ii) only
b. (iv) only
c. (i), (ii), and (iii) only
d. (i), (ii), and (iv) only
b
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In the figure above, the curve that shows the diminishing marginal utility is
A) total utility curve A because it gets steeper as consumption of tomatoes increases. B) total utility curve A because it is higher than total utility curves B or C. C) total utility curve C because it gets flatter as consumption of tomatoes increases. D) total utility curve C because it is lower than total utility curves B and C.
When a CEO gets 20 million dollars a year in salary is any of that considered rent?
A. Because he would leave the company if he got less, none of the money is considered rent. B. All of the money is economic rent because rent refers to all money that moves resources to where they are used. C. Any part of the salary that exceeds the average CEO salary in the industry is rent. D. The part of the salary that exceeds the next highest paid CEO in the industry is rent.
If the United States' unemployment rate is 5% and the capacity utilization rate is 85-90%, then the economy is at ___________.
Fill in the blank(s) with the appropriate word(s).
One difference between a monopoly and a competitive firm is that
A) a monopoly is a price taker. B) a monopoly maximizes profit by setting marginal revenue equal to marginal cost. C) a monopoly faces a downward sloping demand curve. D) None of the above.