A tax wedge:
A. only occurs in markets when taxes are placed on large corporations.
B. only occurs in markets when the tax is placed on buyers.
C. refers to the difference in the price the buyer pays and the price the seller keeps.
D. only occurs in markets when the tax is placed on sellers.
Answer: C
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Which of the following statements about the beer industry is correct?
A) Over the last 30 years, technological change has resulted in substantial diseconomies of scale in the industry. B) In 2000, the minimum efficient scale in the industry was approximately 18 million barrels per year. C) As a result of an increase in the number of microbreweries, the five largest firms in the industry control less than 50 percent of the market. D) The market share of microbreweries was estimated to be 20 percent in 1990.
The gross domestic product (GDP) concept accounts for society's valuation of the relative worth of goods and services by using a ________.
A. utility measure B. monetary measure C. measure of volume D. measure of physical weight