Refer to the Following Figure for the Questions That Follow

question 26

Multiple Choice

Refer to the following figure for the questions that follow.

-The opportunity cost of increasing production of apple pies from 14 to 16 pies is:

• A) 2 blueberry pies.
• B) 14 apple pies.
• C) 7 blueberry pies.
• D) 4 blueberry pies.
• E) 16 blueberry pies.

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Definitions:

Excise Tax

A tax paid on specific goods and services, such as tobacco and gasoline, usually levied at the point of manufacture or sale.

Tax Revenue

The revenue governments obtain from imposing taxes.

Excise Tax

An indirect tax charged on the sale of a particular good.

Music Downloads

The act of transferring music files from the internet to a computer or device for offline listening.