In an Otherwise Efficient Market,an Excise Tax Causes ________ Because

question 92

Multiple Choice

In an otherwise efficient market,an excise tax causes ________ because it distorts the relationship between ________.

• A)allocative inefficiency; prices and marginal costs
• B)allocative inefficiency; pre-tax price and the tax price
• C)productive inefficiency; costs and output
• D)market inefficiencies; prices of similar goods
• E)voter resentment; income and ability to pay

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Definitions:

Competitive Bidding

a procurement process where multiple suppliers submit offers, or bids, to win a contract to supply goods or services, often promoting fair pricing and quality.

Own Transportation Vehicles

pertains to businesses or individuals possessing and utilizing their own vehicles for transportation needs instead of relying on external services.

Production Manager

A professional responsible for overseeing the production process of a company, ensuring efficient operations and meeting production targets.

Selecting Layout

The process of planning and arranging physical spaces in businesses, such as factories or offices, to optimize processes and productivity.