If a $500 tax is placed legally (statutorily) on the sellers of new violins and as a result the price of violins to consumers rises by $400, then the actual burden of the tax
a. falls completely on violin buyers.
b. falls completely on violin sellers.
c. is $400 on violin buyers and $100 on sellers.
d. is $100 on violin buyers and $400 on sellers.
C
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Economic systems differ according to which two main characteristics?
A. Who owns the factors of production and the methods used to coordinate economic activity. B. The technology used in production and the quantity and quality of natural resources. C. How goods are produced and who gets them. D. The political system in place and the degree of scarcity facing the economy.
A perfectly competitive firm can be identified by the fact that
A. its average revenue equals its marginal revenue. B. it experiences diminishing marginal returns. C. it is making only accounting profits in the short run. D. there are other firms in the industry producing similar products.