When a unit tax of $2 is levied on a product
A) the entire $2 is paid by the consumer.
B) the entire $2 is paid by the producer.
C) both the consumer and producer pay $2 each.
D) the consumer pays part of the $2 and the producer pays the rest.
D
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The excess burden of a tax refers to the fact that
A) the benefits from a tax exceed the tax revenue. B) the deadweight loss from a tax exceeds the remaining consumer surplus. C) marginal cost is greater than marginal benefit after the tax. D) a tax creates a deadweight loss. E) taxes are split between buyers and sellers.
Which of the following explains the ability of the U.S. economy to avoid diminishing marginal returns and experience accelerating growth in the early to mid-20th century?
A) immigration B) additions of a greater amount of capital of the same quality C) a decrease in the quality of labor D) continuing technological change