In order to determine tax incidence, one must
a. consider issues of equity.
b. also determine the legal liability of the tax.
c. evaluate where the tax burden eventually falls.
d. use the "flypaper theory" of taxation.
c
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Find equilibrium quantity and price.
Consider the market for a Procter and Gamble biodegradable detergent. Suppose that market demand is QD = 120 – 3P, and market supply is QS = –50 + 2P, where P is the price per case and Q is the quantity in thousands per week.
When interest rates in the U.S. decline, we can expect capital:
A. inflows and outflows to decrease. B. inflows and outflows to increase. C. inflow to decrease, and outflow to increase. D. outflow to decrease, and inflow to increase.
If significant economies of scale are present, large firms will be much more efficient producers than small firms
a. True b. False Indicate whether the statement is true or false
The pollution emitted by a factory is an example of_____
a. an externality b. the free-rider problem c. asymmetric information d. the common-pool problem