The burden of a tax placed on buyers is:
A. shared between buyers and sellers.
B. the buyers' incidence.
C. the sellers' incidence.
D. higher if the tax is placed on buyers.
A. shared between buyers and sellers.
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The three phases of consumption behavior—each identified by a different MPC—of Modigliani's life-cycle hypothesis are
a. young adults, middle age, and near or in retirement b. apprentice, skilled, professional c. staff, manager, senior manager d. agricultural, industrial, services e. urban, rural, international
In a competitive market with free entry and exit, if all firms have the same cost structure, then
a. all firms will operate at their efficient scale in the short run. b. all firms will operate at their efficient scale in the long run. c. the price of the product will differ across firms. d. Both a and b are correct.