Figure 4-9
Refer to . The market for gasoline was initially in equilibrium at point b and a $.40 excise tax is illustrated. Which of the following states the actual burden of the tax?
a.
$.20 for buyers and $.20 for sellers
b.
$.30 for buyers and $.10 for sellers
c.
The entire $.40 falls on sellers.
d.
The entire $.40 falls on buyers.
a
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The output effect describes the situation when a monopolist sells more output and, all else equal, total revenue
a. increases. b. decreases. c. is unchanged. d. is maximized.
All Honolulu law enforcement personnel must go through the same training program, but law enforcement personnel assigned to guard the capital building earn 15% less than law enforcement personnel assigned to the homicide division. This 15% difference in pay is an example of a ________ differential.
A. transfer payment B. human capital C. compensating D. utility