Teesha is a producer of leather belts and bags. She has just learned that a new tax is going to be assessed on leather goods. If Teesha understands how taxes influence pricing, what is her most likely reaction?
a. She is upset because she knows she will receive less for her products.
b. She is happy because she knows she will receive more for her products.
c. She does not care because she knows this will not affect her products.
d. She is happy because she will have more producer surplus on her products.
a. She is upset because she knows she will receive less for her products.
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Using Figure 2 below, suppose that the economy started at PAE2. A potential change that could cause the economy to go from PAE2 to PAE1 might be:
A. wealth level decreases.
B. interest rates decrease.
C. expected profitability of investments increase.
D. domestic income decreases.
The proportion of total income received by a particular group is called the group's
A. Income share. B. Gini coefficient. C. Functional distribution of income. D. Market share.