When the government places a tax on a product
A. . the cost of the tax to buyers and sellers will be less than the revenue raised from the tax by the government.
B. . the cost of the tax to buyers and sellers will equal the revenue raised from the tax by the government.
C. . the cost of the tax to buyers and sellers exceeds the revenue raised from the tax by the government.
D. . without additional information, such as the elasticity of demand for this product, it is impossible to compare tax cost with tax revenue.
Total tax revenue received by government can be expressed as
A. . T/Q.
B. . T＋Q.
C. . T×Q.
D. . T－Q.
Suppose a tax is imposed on the buyers of a product. The burden of the tax will fall
A. . entirely on the buyers.
B. . entirely on the sellers.
C. . entirely on the government.
D. . on both the buyers and the sellers.
A tax placed on a product causes the price the buyer pays
A. . and the price the seller receives to be higher.
B. . and the price the seller receives to be lower.
C. . to be lower and the price the seller receives to be higher.
D. . to be higher and the price the seller receives to be lower.
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