A tax levied on the total amount spent in retail stores is called
a. a sales tax.
b. an excise tax.
c. a retail tax.
d. an income tax.
a
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Assume that for a given year, the nominal interest rate is 9 percent while inflation rises to 11 percent indicating a 4 percent higher rate than anticipated. Which group of people is made better off by the inflation?
a. Those who lend at fixed interest rates b. Those who borrow at fixed interest rates c. Those who borrow at variable interest rates d. Those who receive fixed incomes e. Those who save at variable interest rates
Blossom, Inc. sells 500 bottles of perfume a month when the price is $7. A huge increase in resource costs forces Blossom to raise price to $9, and the firm only manages to sell 460 bottles of perfume. The price elasticity of demand is:
A. 0.33 and elastic B. 3.0 and elastic C. 0.33 and inelastic D. 3.0 and inelastic