The demand curve for pizza is downward sloping and the supply curve is upward sloping. If the government imposes a $2 tax on a pizza, ________ the tax
A) only consumers pay
B) only producers pay
C) both producers and consumers pay part of
D) neither producers nor consumers pay part of
E) the government pays
C
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Referring to the previous question, all else constant, a one unit increase in the price of good Y would cause the quantity demanded of good X to:
A) decrease by 2 units. B) increase by 2 units. C) decrease by 1 unit. D) decrease by 5 units.
Reasons for greater income inequality in less-developed countries than in developed economies are all the following except
a. marginal revenue product of labor is low b. marginal revenue product of capital c. low levels of education are attained d. the economy is in the early stages of transforming from predominantly agricultural to industrial production e. societal preference for income inequality