Why do sellers pay all of a tax when supply is perfectly inelastic?
A) because a perfectly inelastic supply means that the demand is elastic
B) because the government requires firms to collect the tax
C) because a perfectly inelastic supply means that the quantity supplied is quite sensitive to a change in price
D) because a perfectly inelastic supply means that suppliers will produce the same amount regardless of the price
E) because in this case the price of the good that suppliers receive and keep does not change
D
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If a decision is made and it is the best choice for society, the decision is said to be
A) a valid economic choice. B) made in self-interest. C) made in social interest. D) consist with scarcity. E) a want-maximizing choice.
External costs are
A) borne by individuals other than those who incurred them. B) another term for implicit costs. C) borne by the public but incurred by the government. D) borne by the government but incurred by the public.