The Imposition of an Excise Tax Usually Causes the Price

question 3

Multiple Choice

The imposition of an excise tax usually causes the price paid by consumers to ,while the price received by sellers .

• A)fall; remains unchanged
• B)rise; falls
• C)fall; falls
• D)rise; remains unchanged
• E)rise; rises

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Definitions:

Par Common Stock

The nominal or face value of a common stock as stated in the corporate charter, unrelated to its market value.

Property Tax

A local government levy on real estate that is determined by the value of the property.

Federal Income Taxes

Taxes levied by the U.S. federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

State Income Taxes

State income taxes refer to taxes imposed by individual states on the income earned by residents and businesses within their jurisdiction.