When does the burden of a tax imposed on a good fall more heavily on consumers?
What will be an ideal response?
The tax burden falls more heavily on consumers if demand for the good is less sensitive to price changes than its supply, that is, if the elasticity of demand is less than the elasticity of supply. This is because if demand is inelastic, buyers do not reduce their consumption of the good immediately and continue to purchase the taxed good despite the higher price.
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Suppose that real GDP for 2015 was $10,000 billion and real GDP for 2016 was $11,000 billion. What is the rate of growth of real GDP between 2015 and 2016?
A) 1% B) 2% C) 5% D) 10%
The change from prescriptive rights to priority rights meant all of the following except
(a) Entrepreneurial costs of economic development, such as river and lake pollution, had to be paid by those who were responsible for the costs. (b) The courts encouraged entrepreneurial activity by judicial interpretation. (c) Amenity rights to scenery, clear air and quiet enjoyment could be reduced. (d) Judges placed social weights upon property rights that favored some more than others.