Author Question: The Clinton administration has recommended an increase in the tax on yachts to help pay for ... (Read 80 times)

BRWH · **on:** Jul 1, 2018

The Clinton administration has recommended an increase in the tax on yachts to help pay for government programs. Which of the following is true?

A) The burden of this tax will fall entirely on yacht consumers.
B) The burden of this tax will fall entirely on yacht manufacturers.
C) The sales of yachts will decrease.
D) The profit of yacht manufacturers will increase.
E) Employment of workers in the yacht industry will increase.

Question 2

At the profit-maximizing level of output, what is relationship between the total revenue (TR) and total cost (TC) curves?

A) They must intersect, with TC cutting TR from below.
B) They must intersect, with TC cutting TR from above.
C) They must be tangent to each other.
D) They cannot be tangent to each other.
E) They must have the same slope.