The U.S. distribution of income was more unequal in 1990 and 1980 than in 1970.

An economic profit is

A) an opportunity cost of the company. B) a cost that is always measured by the accountant. C) the amount of profit an accountant calculates for a company. D) not the same as the company's normal profit.

Imagine that the state legislature raises the tax on gasoline by 10 cents/gallon. What most likely happens next?

a. Service station operators pass along the tax to you, adding the 10 cents to the price of a gallon of gas. b. Service station operators grumble, but pay the tax without passing the cost along to you. c. Service station operators pass along as much of the tax to you as they can, probably about 6 cents/gallon. d. None of these choices.