Why do economists regard who is legally responsible for paying the tax to be irrelevant?
What will be an ideal response?
Economists regard who is legally responsible for paying a tax to be irrelevant because this fact doesn't have any bearing on who shoulders the actual economic burden of the tax.
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By setting MR = MC, a competitive firm decides to sell 100 units when the market price is $20. The average cost of producing the 100 units is $18 per unit. If the firm has fixed costs of $500, then the firm should
a. shutdown b. expand production c. exit the industry d. increase their price
Refer to Scenario 1-3. Using marginal analysis terminology, what is another economic term for the incremental revenue received from the sale of the last 400 t-shirts?
A) sales revenue B) marginal revenue C) gross earnings D) gross profit
The ________ analysis considers the ability of domestic and foreign prices to adjust to devaluation in the short run
A) pass-through B) absorption C) adjustment mechanism D) currency contract period
Due to a tax rebate before the election, there was an increase in the spending power of individuals. The unpredicted increase in the demand for goods and services caused a _____
a. macroeconomic shortage b. macroeconomic surplus c. recession d. depression