If a Tax Is Placed on Suppliers of a Good

question 30

Multiple Choice

If a tax is placed on suppliers of a good, then the incidence of the tax

• A) falls more on the sellers if demand is elastic.
• B) usually falls more on the buyers than the sellers.
• C) is usually split equally between the buyers and the sellers.
• D) usually falls more on the sellers than the buyers.
• E) falls more on the sellers if demand is inelastic.

Understand the conditions for using z-tests in hypothesis testing and confidence interval estimation.

Determine the appropriate sample size for estimating population proportions.

Understand the Central Limit Theorem and its implications for the distributions of sample means and differences between two sample means.

Calculate and interpret the test statistic for hypothesis tests involving a single population mean, a single population proportion, and the difference between two population means or proportions.

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Definitions:

Marginal Social Cost

The total cost to society of producing an additional unit of a good, including both the private costs borne by the producer and any external costs inflicted on others.

Social Optimum

The most efficient allocation of resources in a society, achieving the best outcomes for social welfare.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by anyone without preventing others from using them as well.

Voluntary Contributions

Donations or services provided by individuals or organizations willingly without any legal or social obligation.