If the market supply curve is perfectly elastic and an excise tax is imposed,
a. all of the tax is paid by buyers
b. all of the tax is paid by sellers
c. the tax burden is divided equally between buyers and sellers
d. the market price will not change
e. the market price will fall by the amount of the tax
A
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The figure above shows the market for polio vaccination in Pakistan. Polio vaccination confers an external benefit because one person's vaccination makes it less likely that other people will catch polio
a. If the market is competitive and left unregulated, how many doses of vaccine will be administered? b. If the Melinda and Bill Gates Foundation underwrites the cost of the vaccine by paying for a large fraction of the preparation and delivery cost, what will happen to the number of doses administered? Why?
If Congress passed a one-time tax cut in order to stimulate the economy in 2014, and tax rate levels returned to their pre-2014 level in 2015, how should this tax cut affect the economy?
A) The tax cut would increase consumption spending more than would a permanent tax cut. B) The tax cut would lower the price level in 2014. C) The tax cut would increase consumption spending by the same amount as would a permanent tax cut. D) The tax cut would increase consumption spending less than would a permanent tax cut.
Resource owners supply resources in ways that
a. maximize their utility b. maximize their income c. minimize the amount of work d. maximize the amount of work e. maximize the demand for their resource
When we talk about injections in the classical model, we refer to
a. taxes b. total government purchases. c. federal government purchases only. d. state government purchases only. e. local government purchases only.