Which of the following is a tax levied on goods?
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When a tax is levied on a good, the buyers and sellers of the good share the burden,a. provided the tax is levied on the sellersb. provided the tax is levied on the buyersc. provided a portion of the tax is levied on the buyers, with the remaining portion levied on the sellersd. regardless of how the tax is levied
Explain the following in the context of income and substitution effects?
a. A tax is levied on wages and a person works lessb. A tax is levied on wages and a person works morec. A tax is levied on wages and a person does not change the hours worked
10. Suppose there are no third party effects associated with production or consumption of good A. Which of the following reasons explains why levying a tax on good A creates an inefficient allocation of goods? A tax levied on a good leads to under-consumption by consumers. A tax levied on a good leads to over-consumption by consumers. The tax causes the market price of the good to equal the marginal cost of the good. The tax increases producer surplus.
