If the Tax Multiplier Is -2

question 335

Multiple Choice

If the tax multiplier is -2.22, the MPC is

• A) 0.82.
• B) 0.78.
• C) 0.69.
• D) 0.31.

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Definitions:

Price Discrimination

A pricing strategy where a firm charges different prices for the same product or service to different consumers, based on their ability to pay, in order to maximize profits.

Privatizing

The act of moving control and ownership from the government to private entities, including businesses, enterprises, agencies, or public services.

Monopolizing

The act or process by which a single seller gains exclusive control over a market, limiting competition and often leading to higher prices for consumers.

Price Discrimination

The strategy of selling the same product at different prices to different groups of consumers, based on their willingness to pay.