Question 1.The incidence of a tax pertains to: (Points : 2)

the degree to which it alters the distribution of income.

how easy it is to evade the tax.

who actually bears the burden of a tax.

the progressiveness or regressiveness of tax rates.

society has a tendency to overuse and thus abuse common resources.

total external costs in society far outweigh total external benefits.

matter can be transformed to other matter or into energy but can never vanish.

crime rates typically are higher in public places than where property is privately owned.

irrational behavior.

a lazy person.

marginal benefit-marginal cost analysis.

programmed learning.

new industrial uses for diamonds have been discovered.

the supply of water is great relative to demand and the supply of diamonds is small relative to demand.

although the total utility of diamonds is greater, their marginal utility is small.

the supply of diamonds is great relative to demand and the supply of water is small relative to demand.

allocates resources efficiently and allows economic freedom.

results in an equitable personal distribution of income and always maintains full employment.

results in price level stability and a fair personal distribution of income.

eliminates discrimination and minimizes environmental pollution.

tendency of supply and demand to shift in opposite directions.

fact that ration coupons are needed to alleviate wartime shortages of goods.

capacity of a competitive market to equate the quantity demanded and the quantity supplied.

ability of the market system to generate an equitable distribution of income.

the smaller will be the price elasticity of demand.

the greater will be the price elasticity of demand.

the more likely the product is a normal good.

the more likely the product is an inferior good.

product; financial

resource; product

product; resource

capital; product

producing the combination of goods most desired by society.

achieving the full employment of all available resources.

producing every good with the least-cost combination of inputs.

reducing the concavity of the production possibilities curve.

people are selfish in their decision-making.

people weigh costs and benefits to make decisions.

people are immune from emotions affecting their decisions.

decision-makers do not make mistakes when weighing costs and benefits.

buyer responsiveness to price changes.

the extent to which a demand curve shifts as incomes change.

the slope of the demand curve.

how far business executives can stretch their fixed costs.

the use of the least-cost method of production.

the production of the product-mix most wanted by society.

the full employment of all available resources.

production at some point inside of the production possibilities curve.

not applicable to economics, because economics deals with human beings.

also known as the economic perspective.

analysis that moves from broad generalizations called laws to theories and then to hypotheses.

used by economists and other social scientists, as well as by physical scientists and life scientists.

consumption goods.

capital goods.

private goods.

public goods.

should substitute X for Y until the marginal utility per hour is the same for both products.

should consume X and Y in the equal amounts.

should consume less of Y and more of X.

should consume less of X and more of Y.