The term tax incidence refers to
A) the amount of revenue government collects from a tax imposed on a good or service.
B) whether the burden of a tax rests more heavily on those with higher incomes or those with lower incomes.
C) the degree of progression of a tax.
D) the actual division of the burden of a tax between buyers and sellers in a market.
D
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The Great Depression was made more severe because
A) the government lowered tariffs against imported goods. B) the Federal Reserve increased the money supply after the stock market crashed. C) depositors made runs on banks, thereby destroying the banking system in large parts of the nation. D) depositors left their money in banks instead of increasing spending, which would have increased GDP.
Mary is willing to pay $50 for a Christmas tree, John is willing to pay $45 and Jeff is willing to pay $40. The price of a tree is $40. The total consumer surplus for Mary, John and Jeff taken together is
A) $15. B) $135. C) $40. D) $95. E) $120.