Whether an excise tax is imposed on a demander or supplier is irrelevant because
a. in either case the price that the demander has to pay will decrease; while the price the supplier receives will increase
b. in either case the price that the demander has to pay will increase; while the price the supplier receives will decrease
c. either situation will create excess demand
d. either situation will create excess supply
e. none of these are correct
B
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An event that allows the economy to operate more efficiently by producing more outputs without using any more inputs is referred to as
A) technological progress. B) absolute progress. C) efficiency progress. D) capital investment.
If the price of the good measured along the vertical axis increases without a change in the price of the good measured along the horizontal axis, the consumer's budget constraint:
A) pivots rightward without a change in the intercept on the horizontal axis. B) pivots leftward without a change in the intercept on the horizontal axis. C) shifts to the right. D) shifts to the left.