Which of the following statements is correct regarding the imposition of a tax on gasoline?
a. The incidence of the tax always falls on the buyer
b. The incidence of the tax depends upon the price elasticities of demand and supply.
c. The incidence of the tax always falls on the sellers.
d. The oil company will ultimately pay.
b
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Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers offer two main hypotheses:
a. one hypothesis emphasizes education, and the other emphasizes compensating differentials. b. one hypothesis emphasizes education, and the other international trade. c. one hypothesis emphasizes international trade, and the other emphasizes technology. d. one hypothesis emphasizes technology, and the other emphasizes compensating differentials.