There is a difference between who is legally required to send a tax payment to the government and who bears the burden of the tax. Which of the following would have the most impact on who bears the burden of an excise tax?
A) The elasticity of demand for the item that is taxed.
B) whether the tax is based on the ability-to-pay principle or the benefits-received principle
C) whether the tax is imposed by the federal government or a state government
D) The motive for the tax. If the tax is designed to raise revenue, more of the burden will fall on firms. If the tax is designed to achieve a social objective (for example, to discourage smoking) more of the burden will fall on consumers.
A
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Which of the following is assumed when constructing a production possibilities curve?
A) a fixed amount of resources B) the efficient use of resources C) resources of a given quality D) All of the above are correct.
A consumer will consume the combination of goods at the crossing point of a budget line and indifference curve
a. True b. False Indicate whether the statement is true or false