This economics question tests your understanding of economic models and analysis. The step-by-step answer below applies the relevant framework and explains the reasoning.
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Here are the answers to your questions: Q16. Which of the following CORRECTLY describes 'tax incidence'? Tax incidence refers to the economic burden of a tax, indicating who ultimately pays the tax, regardless of who is legally required to remit it. The correct option is (B). B) Who actually bears the final economic burden of a tax Q17. Structural unemployment in PNG is BEST described as unemployment caused by: Structural unemployment arises from a mismatch between the skills workers possess and the skills demanded by employers, often due to technological changes or shifts in the economy's structure. The correct option is (C). C) Changes in the structure of the economy where workers' skills no longer match available jobs Q18. 'Cost-push inflation' in Papua New Guinea is MOST likely caused by: Cost-push inflation occurs when the overall price level increases due to increases in the cost of wages and raw materials, such as fuel prices, which producers pass on to consumers. The correct option is (B). B) A rise in production costs such as fuel prices, which are passed on to consumers Q19. The Consumer Price Index (CPI) measures: The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. The correct option is (B). B) The average change in prices of a representative basket of goods and services bought by households Q20. If PNG's base year CPI = 100 and the current year CPI = 118, the inflation rate is: The inflation rate is calculated as the percentage change in the CPI from the base year to the current year. Step 1: Use the formula for inflation rate. Inflation Rate = Current Year CPI - Base Year CPIBase Year CPI × 100\% Step 2: Substitute the given values into the formula. Inflation Rate = (118 - 100)/(100) × 100\% Step 3: Calculate the result. Inflation Rate = (18)/(100) × 100\% = 0.18 × 100\% = 18\% The correct option is (A). A) 18% That's 2 down. 3 left today — send the next one.