If a Tax Is Placed on Perfectly Competitive Firms That

question 167

Multiple Choice

If a tax is placed on perfectly competitive firms that impose external costs on society, the firm's ________ curve will shift up and the industry ________ curve will shift to the left.

• A) marginal cost; demand
• B) marginal benefit; demand
• C) marginal benefit; supply
• D) marginal cost; supply

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Definitions:

Witchcraft

A set of practices believed to influence physical or supernatural forces through rituals or magic.

Ancestral Spirits

The spirits of deceased ancestors who are believed in various cultures to provide guidance or protection to the living.

Secularization

A process of cultural change in which a population tends toward a nonreligious worldview, ignoring or rejecting institutionalized spiritual beliefs and rituals.

Christianity

A monotheistic religion based on the life and teachings of Jesus Christ, emphasizing salvation through faith, the sacraments, and the authority of the Bible.