The total burden of a tax is $12,000 and the tax revenue from this tax is $8,000. The excess burden of this tax is
A. $4,000.
B. $8,000.
C. $10,000.
D. $20,000.
Answer: A
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The infant industry argument calls for active government involvement
A) only if the government forecasts are accurate. B) only if some market failure can be identified. C) only if the industry is not one already dominated by industrial countries. D) only if the industry has a high value added. E) only if the industry is independently able to earn high returns.
Which of the following types of information most likely allows the exploitation of a profit opportunity?
A) financial analysts' published recommendations B) technical analysis C) hot tips from a stockbroker D) insider information
Harry's HVAC sells its new units bundled with after sales service. Why would it want to do that?
a. To ensure that the customer knows that they are stuck with Harry's service technicians b. To ensure that only the highest paid personnel get to service the units c. To ensure that the customers do not buy second-class servicing and then infer faulty design if a unit breaks down due to inadequate service d. All of the above
An income tax increase in the Virgin Islands will cause the Islands'
a. consumption curve to shift downward b. consumption curve to shift upward c. investment curve to shift upward d. investment curve to shift downward e. economy to move to the right along its current investment curve