If the supply of a good is perfectly inelastic, then suppliers will bear the full burden of an excise tax
a. no matter how elastic the demand for the good is.
b. only if demand is perfectly elastic.
c. only if demand is perfectly inelastic.
d. only if the government forbids them to raise the price of the good.
a
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Why is NAFTA a free-trade area requiring rules of origin rather than a customs union?
a. A free-trade agreement allows politically sensitive tariffs of each nation to remain unchanged. b. A customs union also requires rules of origin. c. The overall level of U.S. tariffs was much higher than the overall level of tariffs in Mexico and Canada. d. The overall levels of tariffs in Canada, Mexico, and the United States are similar, making rules of origin irrelevant.
According to this Application, tariffs in the United States are very high on textiles, apparel items, and footwear, and within these categories tariffs are highest on the cheapest products
These tariffs disproportionately impact lower-income households because A) only lower-income consumers buy cheap, imported products. B) these cheaper products tend to be purchased by lower-income consumers. C) higher-income consumers can deduct the tariff from their income taxes. D) higher-income consumers tend to refuse to purchase products with tariffs.