The tax incidence
a. is the manner in which the burden of a tax is shared among participants in a market.
b. can be shifted to the buyer by imposing the tax on the buyers of a product in a market.
c. can be shifted to the seller by imposing the tax on the sellers of a product in a market.
d. All of the above are correct.
a
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The marginal cost of enforcement (MCE)
a. is the additional cost incurred by government to monitor and enforce abatement activity b. is a negatively sloped function c. can be measured as the vertical sum of MACmkt and MSC at any abatement level d. represents the horizontal sum of all polluters’ MAC functions
Suppose there are 5 million unemployed workers seeking jobs. After a period of time, 1 million of them become discouraged over their job prospects and cease to look for work. As a result of this, all else equal, the official unemployment rate would
A. be unchanged. B. increase in the short run but eventually decline. C. increase. D. decline.
In the United States, most periods of very high inflation occurred
A) during times of war. B) during recessions. C) in the past 25 years. D) before the year 1800.
Which of the following is an economic goal of a nation?
a. High inflation b. High mortality rate c. Trade deficit d. Low unemployment