Suppose the Demand for Peaches from South Carolina Is Perfectly

question 76

Multiple Choice

Suppose the demand for peaches from South Carolina is perfectly elastic.If the supply curve is upward sloping and a tax is imposed on peaches from South Carolina,then

• A) peach sellers pay all of the tax.
• B) peach buyers pay all of the tax.
• C) peach buyers and sellers evenly split the tax.
• D) the government does not collect any revenue from the tax.
• E) the tax does not change the equilibrium quantity of peaches.

---

Definitions:

Predictive Validity

Refers to the extent to which a score on a scale or test predicts future performance or outcomes on a related measure.

Nominal Scale

A scale of measurement with two or more categories that have no numerical (less than, greater than) properties.

Discriminant Validity

The extent to which a measurement does not correlate with measurements from different constructs, ensuring distinctiveness among variables.

Predictive Validity

The extent to which a score on a scale or test predicts scores on some criterion measure.