Suppose that the supply curve for a good is vertical. In this case we would expect
A. a tax placed on the buyer to be borne entirely by the seller.
B. nothing to be sold so no tax is collected.
C. a tax placed on the buyer to be borne entirely by the buyer.
D. the tax to be shared equally by both buyer and seller.
Answer: A
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When the economy slows down and national income falls, the government will have ________ tax revenue to fund programs
A) about the same B) a rapid increase in C) more D) less
Russia chose a slow approach to creating a private economy and China chose a fast approach
Indicate whether the statement is true or false
An increase in the price of good X due to a reduction in its supply will: a. increase the total revenue of good X
b. decrease the total revenue of good X. c. increase the total revenue of goods that are substitutes for X. d. increase the total revenue of goods that are complements for X.
The primary objective of multinational tax planning is to minimize the firm's worldwide tax burden.
a. true b. false