Refer to the Article Summary. Colorado taxes marijuana with a 12.9% sales tax on buyers and a 15% wholesale excise tax on producers, which equates to 46 percent of the total taxes paid by retail buyers and 54 percent paid by producers
Does this necessarily mean that buyers will bear 46 percent of the burden of the tax and producers will bear 56 percent of the burden?
A) Yes, the percentage of taxes paid by each group represents the burden of the tax.
B) No, because consumers and producers always bear equal burdens of a tax.
C) No, the burden of the tax will depend on the elasticity of demand and supply.
D) No, the burden of a tax is always 100 percent on the consumer.
C
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Which of the following would represent the fastest annual growth?
a) An increase in real GDP per capita of 3%. b) An increase in real GDP of 6% and population growth of 4%. c) An increase in real GDP of 2% and population decline of 1%. d) An increase in real GDP of 5% and population growth of 1%.
Refer to the above figure. Suppose the economy is at point A. By the proper use of fiscal policy, the government can
A) boost taxes to shift LRAS through point A. B) increase government spending to get the economy to point B. C) raise income tax rates to get the economy to point C. D) reduce government spending to get the economy to point D.