Buyers of a product will bear the larger part of the tax burden, and sellers will bear a smaller part of the tax burden, when the
a. tax is placed on the sellers of the product.
b. tax is placed on the buyers of the product.
c. supply of the product is more elastic than the demand for the product.
d. demand for the product is more elastic than the supply of the product.
c
You might also like to view...
Suppose the majority of the shares of Yahoo stock were sold to an Italian firm. Other things equal, this will
A) increase the balance of the U.S. current account. B) increase the balance of the U.S. financial account. C) create a capital outflow in the United States. D) decrease net portfolio investment in the United States.
The author of the book An Inquiry into the Nature and Causes of the Wealth of Nations is
A) Thorstein Veblen. B) Adam Smith. C) Milton Friedman. D) Alan Greenspan.
What is not an accurate description of US immigration?
a. Significant immigration from continental Europe started after the War of 1812. b. Most immigrants in the initial period of the US came from NW Europe, were replaced first by immigrants from Asian nations, which were eventually replaced by immigrants from SE Europe. c. Large scale immigration from Latin America to the US started since the Depression.
Which of the following offers the best example of the special interest theory of regulation?
a. The deregulation of the trucking industry. b. Consumer groups lobbying the Federal Energy Regulatory Commission to create a competitive market for natural gas. c. A state public utility commission regulating a natural monopoly to best serve the public interest by maintaining low prices and sustaining the firm at zero economic profit. d. The Civil Aeronautics Board (CAB) protecting existing airlines from competition by rejecting every single application for new entry into interstate airline markets over the life of the CAB.