Figure 4-20 Refer to Figure 4-20. Suppose the Same S and D

question 210

Multiple Choice

Figure 4-20
Refer to Figure 4-20. Suppose the same S and D curves apply, and a tax of the same amount per unit as shown here is imposed. Now, however, the sellers of the good, rather than the buyers, are required to pay the tax to the government. Now, relative to the case depicted in the figure,

• A) the burden on buyers will be larger and the burden on sellers will be smaller.
• B) the burden on buyers will be smaller and the burden on sellers will be larger.
• C) the burden on buyers will be the same and the burden on sellers will be the same.
• D) The relative burdens in the two cases cannot be determined without further information.

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Definitions:

Edmund Burke

An Irish statesman, author, orator, political theorist, and philosopher, who served as a member of parliament in England between 1766 and 1794, and is known for his support of the American Revolution and his opposition to the French Revolution.

Slavery

The practice or system of owning individuals as property and forcing them to work without pay.

Liberty

Enjoying a state of freedom in a society where authority-imposed restrictions on lifestyle, behavior, or politics do not exist.

Loyalists' Exile

Loyalists' Exile denotes the period following the American Revolution where individuals loyal to the British crown, known as Loyalists, were forced to flee the newly independent United States, many resettling in Canada, Britain, or the British Caribbean.