If a $10 Sales Tax Is Imposed on a Good

question 225

Multiple Choice

If a $10 sales tax is imposed on a good and the equilibrium price increases by $10, the tax is

• A)split between buyers and sellers but not evenly.
• B)paid fully by sellers.
• C)paid fully by buyers.
• D)split evenly between buyers and sellers.
• E)impossible to determine the incidence of without further information.

---

Definitions:

Employment-At-Will

A doctrine followed by most jurisdictions in the United States that says an employer can dismiss an employee at any time for any reason.

Wrongful Discharge

The unjust termination of an employee's contract, typically in violation of legal or contractual terms.

Title VII

Refers to a portion of the Civil Rights Act of 1964 prohibiting employment discrimination based on race, color, religion, sex, and national origin.

BFOQs

Bona Fide Occupational Qualifications - employment qualifications that employers are allowed to consider while making decisions about hiring and retention of employees.