When a Per Unit Tax Is Imposed on an Industry

question 83

Multiple Choice

When a per unit tax is imposed on an industry characterized by a perfectly inelastic supply curve:

• A)producers pay the full amount of the tax.
• B)the output goes to zero.
• C)consumers and producers share the tax.
• D)consumers pay the full amount of the tax.

---

Definitions:

Self-Motivated

Driven by one's own interest, desire, or willingness to achieve something without needing external pressure or incentive.

Motivator-Hygiene Model

A theory by Frederick Herzberg that suggests job satisfaction and dissatisfaction arise from different factors: motivators lead to satisfaction while hygiene factors prevent dissatisfaction.

Hygiene Factors

Factors related to job dissatisfaction, such as salary, working conditions, and company policies, according to Herzberg's motivation-hygiene theory.

Motivators

Factors or incentives that encourage a person to act or work harder.