A Per- Unit Tax Placed on the Employment of a Particular

question 38

Multiple Choice

A per- unit tax placed on the employment of a particular input in one of many regions will lead to:

• A)a point which is inside the production possibilities frontier.
• B)decrease in output prices.
• C)a corner solution on the production possibilities frontier.
• D)inefficiency in consumption.

---

Definitions:

Labor-Hour

A measure of the amount of work or labor time required or used to produce a good or service.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost of variable overhead that should have been incurred based on the efficiency of operations.

Favorable

An accounting term referring to actual results being better than projected or budgeted figures, often used in the context of variances.

Unfavorable

A term often used in finance and accounting to describe a variance or outcome that leads to a worse financial position than expected.