A tax on fur coats will most likely ( )
A: raise large amounts of tax revenue for the government.
B: cause a large decline in the sales of fur coats because demand is elastic.
C: be an effective way to tax the rich.
D: fall mostly on the fur coat buyers rather than the producers.
A: raise large amounts of tax revenue for the government.
B: cause a large decline in the sales of fur coats because demand is elastic.
C: be an effective way to tax the rich.
D: fall mostly on the fur coat buyers rather than the producers.
举一反三
- Which of the following statements is most accurate in regard to the tax division between buyers and sellers of products with perfectly elastic demand A: Sellers pay the entire tax. B: Buyers bear the entire tax burden. C: Buyers and sellers share the tax burden.
- If a tax is imposed on a market with inelastic supply and elastic demand, then A: buyers will bear most of the burden of the tax. B: sellers will bear most of the burden of the tax. C: the burden of the tax will be shared equally between buyers and sellers. D: it is impossible to determine how the burden of the tax will be shared.
- A large decrease in the income tax rate will most likely cause A: a fairly large increase in aggregate demand B: a fairly small increase in aggregate supply C: an increase in the price level D: all of the above E: none of the above
- Cutting income tax rates will most likely cause A: a large shift in the AD-curve but a small shift in the AS-curve B: a small shift in the AD-curve but a large shift in the AS-curve C: a large increase in output resulting in a large increase in tax revenues D: a budget deficit so large that income growth is no longer possible E: both B) and C)
- A tax imposed on a market with an inelastic demand and an elastic supply will cause() A: sellers to pay the<br/>majority of the tax. B: buyers to pay the<br/>majority of the tax. C: the tax burden to<br/>be equally divided between buyers and sellers. D: the tax burden to<br/>be divided, but it cannot be determined how.