Author Question: Rather than prohibiting a good or service, the government might tax it. Imposing such a tax on a ... (Read 78 times)

mrsjacobs44 · **on:** Jun 29, 2018

Rather than prohibiting a good or service, the government might tax it. Imposing such a tax on a good or service ________ the equilibrium price and ________ the equilibrium quantity.

A) raises; increases
B) raises; decreases
C) lowers; increases
D) lowers; decreases

Question 2

Lifetime income is distributed

A) less equally than annual income and less equally than measured wealth.
B) less equally than annual income and more equally than measured wealth.
C) more equally than annual income and less equally than measured wealth.
D) more equally than annual income and more equally than measured wealth.