Refer to Figure 18-2. If the government imposes an excise tax of $1.00 on every unit sold, the producer's burden of the tax
A) is Pa - Pd under either supply curve.
B) is Pa - Pd if the supply curve is S0 and Pb - Pe if the supply curve is S1.
C) is Pc - Pd if the supply curve is S0 and Pc - Pe if the supply curve is S1.
D) is Pb - Pe under either supply curve.
C
Economics
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If Sophia's tax liability increases from $10,000 to $15,000 when her income increases from $30,000 to $40,000, her marginal tax rate is
a. 33 percent. b. 35 percent. c. 50 percent. d. 60 percent.
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Businesses in the United States cut their investment projects by $30 billion. If the MPC is 2, what will be the impact on the national income (Y)?
A. Y will fall by $15 billion. B. Y will fall by $30 billion. C. Y will fall by $60 billion. D. Y will fall by $120 billion.
Economics