When a Good Is Taxed

question 56

Multiple Choice

When a good is taxed,

• A)both buyers and sellers of the good are made worse off.
• B)only buyers are made worse off, because they ultimately bear the burden of the tax.
• C)only sellers are made worse off, because they ultimately bear the burden of the tax.
• D)neither buyers nor sellers are made worse off, since tax revenue is used to provide goods and services that would otherwise not be provided in a market economy.

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Definitions:

Time Deposits

Banking products that hold a fixed amount of funds for a specified period of time, earning interest, such as CDs.

Recordkeeping

The systematic process of maintaining records for financial transactions and other business activities.

Custody of Assets

Responsibility for safeguarding and managing physical or digital assets, ensuring their security and proper use.

Automated Sales Systems

Technology-driven systems designed to streamline the sales process, often involving automated customer interactions, order processing, and data analysis.