One result of a tax, regardless of whether the tax is placed on the buyers or the sellers, is that the
a. equilibrium quantity of the good is unchanged.
b. price the buyer effectively pays is lower.
c. supply curve for the good shifts upward by the amount of the tax.
d. tax reduces the welfare of both buyers and sellers.
d
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Answer the following statement(s) true (T) or false (F)
1. The use of uniform emissions standards on mobile sources generates a cost-effective solution. 2. According to a study conducted by the National Academy of Sciences, a uniform standard imposed on motor vehicles would be more cost-effective than a two-tiered standard. 3. Plug-in hybrids and hybrid vehicles are examples of partial zero-emission vehicles (PZEVs). 4. U.S. policy on mobile sources imposes more stringent controls on new vehicles, creating a bias against newer, and hence cleaner, motor vehicles.
This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price for that good.
According to the graph shown, if the government restricts free trade, area G represents:
A. government tax revenues, which go to the domestic government. B. quota rents, which go to foreign firms or governments. C. quota rents, which go to domestic producers. D. government tax revenues, which go to the foreign government.