One Result of a Tax,regardless of Whether the Tax Is

question 190

Multiple Choice

One result of a tax,regardless of whether the tax is placed on the buyers or the sellers,is that the

• A)equilibrium quantity of the good is unchanged.
• B)price the buyer effectively pays is lower.
• C)supply curve for the good shifts upward by the amount of the tax.
• D)tax reduces the welfare of both buyers and sellers.

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Definitions:

Capital Balance

The capital balance in a company's equity section represents the owner's investment, adjusted for withdrawals and profits or losses.

Withdraws

Money taken out from a business by its owners for personal use.

Bonus Distribution

The payout of extra compensation to employees or partners beyond their regular earnings.

Capital

The financial assets or the financial value of assets, such as cash, that are utilized by a company to fund and sustain its operations and growth.