A Tax of $1 on Each Unit a Producer Sells

question 166

Multiple Choice

A tax of $1 on each unit a producer sells will

• A) shift supply to the right.
• B) increase quantity demanded.
• C) shift supply to the left.
• D) increase quantity supplied.
• E) decrease demand.

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Definitions:

Cash Transfers

Direct payments given to individuals or households, typically by the government, to reduce poverty or provide social assistance.

Direct Aid

Financial or material support provided directly to individuals, organizations, or countries in need, often aimed at alleviating poverty or addressing emergencies.

World Bank

An international financial institution that provides loans and grants to the governments of low and middle-income countries for the purpose of pursuing capital projects.

Economic Growth

An increase in the production of economic goods and services, compared from one period of time to another.