Regulated industries that exhibit economies of scale and marginal cost pricing will lead to losses.

If a $10 sales tax is imposed on a good and the equilibrium price increases by $10, the tax is

A) split between buyers and sellers but not evenly. B) paid fully by sellers. C) paid fully by buyers. D) split evenly between buyers and sellers. E) perhaps split between buyers and sellers but it is impossible to determine the incidence without further information.

Scarcity is caused by

A) unlimited wants running up against limited economic resources. B) lazy workers. C) an individual's budget that is insufficient to cover the expenses of certain goods or services. D) shortages.