The economic burden of an excise tax
a. can usually be partially shifted from buyers onto sellers.
b. equals the revenue from the tax.
c. is less than the burden of an income tax that would raise the same revenue.
d. is shared equally by buyers and sellers.
a
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The Chinese policy of one child per family provided McDonald's the opportunity to actively market to:
A) children. B) senior citizens. C) parents. D) none of the above.
Auto dealers slash prices at the end of the model year in response to deficient demand/excess inventory but restaurants facing the same problem slash production because
a. auto customers are less price sensitive than restaurant customers b. price elasticity of demand (in absolute values) is higher for auto than restaurant customers c. price elasticity of supply is lower in auto than in restaurants d. restaurant food spoils quickly and is much more perishable e. price elasticity of supply in autos is smaller than the absolute value of price elasticity of demand but the reverse is true for restaurants
A stronger dollar would be a good policy if the U.S. government wanted to:
A. increase U.S. imports and expand the U.S. economy. B. reduce U.S. imports and slow the U.S. economy. C. reduce U.S. exports and slow the U.S. economy. D. increase U.S. exports and expand the U.S. economy.
Restricting imports
A) can protect United States jobs in the protected industry, which increases economic welfare of the country as a whole. B) can protect United States final goods and services in the protected industry and makes consumers better off. C) can protect United States final goods and services in the protected industry and increase economic welfare of the country as a whole. D) can protect United States jobs in the protected industry but will also lead to reductions in U.S. output and income.