The supply of sand is perfectly inelastic and the demand curve for sand is downward sloping. Hence, if a tax on sand is imposed,
A) sand buyers pay the entire tax.
B) sand sellers pay the entire tax.
C) the tax is split evenly between the buyers and sellers.
D) the government pays the entire tax.
E) the government collects no tax revenue because the supply is perfectly inelastic.
B
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What does the PPI measure?
A) the level of production of goods and services generated in the economy in a given year B) the average of the prices received by producers of goods and services at all stages of the production process C) the average change in the prices paid for all goods produced in the economy over a given year D) the difference between the prices consumers pay for goods and services and the prices producers pay for goods and services
A key international institution that plays an important role in exchange rate determination is the
A) U.S. Currency Board. B) European Central Bank. C) World Bank. D) International Monetary Fund.