Refer to Figure 7-2. Without the tariff in place, the United States consumes

Municipal bonds are issued

A) only by local governments. B) only by state governments. C) by both state and local governments. D) by the federal government, and by state and local governments.

Suppose sellers of liquor are required to send $5.00 to the government for every bottle of liquor they sell. Further, suppose this tax causes the price paid by buyers of liquor to rise by $3.00 per bottle. Which of the following statements is correct?

a. This tax causes the supply curve for liquor to shift upward by $5.00 at each quantity of liquor. b. The effective price received by sellers is $5.00 per bottle less than it was before the tax. c. Forty percent of the burden of the tax falls on buyers. d. All of the above are correct.