The Economizing Problem Is Essentially One of Deciding How to Make

question 185

Multiple Choice

The economizing problem is essentially one of deciding how to make the best use of

• A) limited resources to satisfy limited wants.
• B) unlimited resources to satisfy limited wants.
• C) limited resources to satisfy virtually unlimited wants.
• D) unlimited resources to satisfy unlimited wants.

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Definitions:

Tax

Compulsory contributions made to government revenues, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions.

Per-unit Burden

The tax cost to a buyer or a seller for each unit of a good or service, often used to analyze the effect of taxes on market equilibrium.

Tax

A financial charge or other levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Consumer Surplus

The shortfall between the total consumers are willing to contribute towards a good or service and the actual contribution.