-In the Figure Above, Imposing a Tax on the Sellers

question 141

Multiple Choice

-In the figure above, imposing a tax on the sellers of the product results in a division in which

• A) all of the tax is paid by the sellers.
• B) the buyers and sellers pay the same amount.
• C) neither the buyers nor the sellers pay the tax.
• D) all of the tax is paid by the buyers.

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Definitions:

Commons Dilemma

A situation in which individuals' short-term selfish interests are in conflict with long-term group interests and common good.

Prisoner's Dilemma

A scenario in game theory in which two individuals acting in their own self-interest do not produce the optimal outcome for either party.

Ultimatum Game

A game in economic experiments where two players decide on how to divide a sum of money; the proposer suggests a division and the responder can either accept or reject it.

Entitativity

The degree to which a collection of people feels like a cohesive group.