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A Higher Rate Is MOST Likely to Decrease the Amount

question 74

Multiple Choice

A higher rate is MOST likely to decrease the amount of revenue that the government collects from an excise tax if demand is _____ and supply is _____.


Definitions:

Output

In economics, output refers to the total amount of goods or services produced by a firm or country.

Factor of Production

An input used in the production of goods and services, such as land, labor, capital, and entrepreneurship.

Machines

Mechanical or electronic devices that perform tasks, often complex, without human intervention.

Buildings

Structures constructed for residential, commercial, or industrial purposes.

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