In 1984, the South Carolina State Supreme Court ruled that a 20 percent admission tax on X-rated movies was unconstitutional. When the affected cinemas sought a refund of collected taxes, they were denied on the grounds that the tax, although collected by the theater, was indeed paid by the theatergoers. The Supreme Court apparently believed
a. the supply of X-rated movies was perfectly elastic.
b. the demand for X-rated movies was perfectly inelastic.
c. the legislation intended that the theatergoers pay the tax.
d. the burden fell on the theatergoers-there are no excess burdens on the theater.
b
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If the population is 300 million, with 70 million under the age of 16 and institutionalized, another 70 million not in the labor force, 10 million unemployed, and 150 million employed, the employment-to-population rate is
A) 53.3 percent. B) 65.2 percent. C) 46.7 percent. D) 87.5 percent.
The above figure shows the market for rice in Japan. S2 represents the domestic supply curve, and S1 represents the world supply curve. Suppose a free market exists. An import quota of 30 units would
A) cause consumer surplus to fall by "e." B) cause social welfare to fall by $30. C) increase producer surplus by "d." D) have no effect.