The excess burden of a tax
A) is measured by the administrative costs required to implement a tax system.
B) is a measure of the foregone consumption as a result of having to pay taxes.
C) is a measure of the hardship imposed on low-income individuals in a society.
D) measures the efficiency loss to the economy that results from a tax, causing a reduction in the quantity of goods and services produced.
D
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Suppose that a technological advancement substantially reduces the cost of laser eye surgery. This would cause the equilibrium
A) quantity of laser eye surgery to decrease. B) quantity of laser eye surgery to increase. C) price of technology to increase. D) quantity of technology to decrease.
The table above lists the market shares of the twenty makers of personal computers. Based upon the Herfindahl-Hirschman Index for this industry, the Justice Department would
A) regard the industry as highly concentrated. B) be against any two firms merging. C) consider the market oligopolistic. D) regard the industry as competitive.