If the Government Wants to Reduce Smoking,it Should Impose a Tax

question 165

Multiple Choice

If the government wants to reduce smoking,it should impose a tax on

• A)buyers of cigarettes.
• B)sellers of cigarettes.
• C)either buyers or sellers of cigarettes.
• D)whichever side of the market is less elastic.

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Definitions:

Production Possibilities Frontier

represents the maximum combination of goods and services that can be produced in an economy, given its resources and technology level.

Bowed Outward

Describes the shape of a production possibility frontier that reflects increasing opportunity costs as more of one good is produced.

Coats

Garments worn on the upper body, typically extending below the hips, designed for warmth or fashion.

Evaluate Results

The process of analyzing outcomes to assess the effectiveness and efficiency of actions or strategies implemented.