When a Tax Is Assessed on Producers

question 10

Multiple Choice

When a tax is assessed on producers,

• A)the amount of the product traded does not change because demand is unaffected.
• B)the price of the product does not change because the tax is on producers.
• C)consumers bear the brunt of the tax because producers simply pass their costs on to the buyers of the good.
• D)the price of the product always goes up by the amount of the tax.
• E)the product price typically does not rise by the full amount of the tax.

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Definitions:

Utilitarianism

A philosophical theory that suggests the best action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.

Ethical Relativism

The philosophical view that moral standards, values, and judgments are not universal but are culturally and individually determined.

Open-Mindedness

The willingness to consider new ideas, arguments, and information without bias or predetermined conclusions.

Moral Behavior

Actions that conform to accepted standards of good or right conduct, often based on societal or personal ethical principles.