Tax incidence refers to
A) determining who sends the taxes into the government.
B) the tendency of some people to avoid paying taxes at all.
C) the distribution of tax burdens among groups, or who really pays a tax.
D) determining the marginal tax rate applied to any increase in income.
C
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Joe consumes pizza and movies. He is currently spending his entire income and his marginal utility of pizza is 10 and his marginal utility of movies is 5
If the price of a pizza is $10 and the price of a movie is $5, then to maximize his utility Joe should A) increase consumption of pizza and decrease consumption of movies. B) increase consumption of movies and decrease consumption of pizza. C) not change his current bundle of movies and pizza. D) increase consumption of both goods.
Suppose one person buys a copy of Consumer Reports and gives away free copies to all who request one. This is an example of
A) free rider problem. B) moral hazard. C) adverse selection. D) economies of scale.