Figure 4-20
Refer to . Suppose the same S and D curves apply, and a tax of the same amount per unit as shown here is imposed. Now, however, the sellers of the good, rather than the buyers, are required to pay the tax to the government. Now, relative to the case depicted in the figure,
a.
the burden on buyers will be larger and the burden on sellers will be smaller.
b.
the burden on buyers will be smaller and the burden on sellers will be larger.
c.
the burden on buyers will be the same and the burden on sellers will be the same.
d.
The relative burdens in the two cases cannot be determined without further information.
c
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The principal effect of unemployment insurance on the entire U.S. economy is
a. that it spreads the costs of unemployment. b. that it eliminates the social costs of unemployment. c. that it reduces the social costs of unemployment. d. the reduction in the federal debt.
A society is productive inefficient when
A) it produces at a point inside (below) its PPF. B) it does not produce the maximum output with its given resources and technology. C) it can produce more of one good without giving up some of another good. D) both a and b E) all of the above