Which of the Following Is TRUE About the Effects of an Excise

question 149

Multiple Choice

Which of the following is TRUE about the effects of an excise tax if consumers are totally unresponsive to price changes?

• A) Consumers pay all of the excise tax.
• B) Producers pay all of the excise tax.
• C) Consumers and producers share the excise tax equally.
• D) Neither consumers nor producers pay the excise tax.

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Definitions:

External Validity

The degree to which the results of a study can be generalized to other situations, populations, or time periods outside of the study conditions.

Sensitizing Effects

Changes in behavior or responses due to participants becoming accustomed or sensitized to the experiment or its conditions.

Within-Subjects Designs

Experimental design in which the same participants are exposed to all conditions or treatments, allowing direct comparison of responses across conditions.

Order Effects

The impact of the order in which treatments, tasks, or stimuli are presented on the participants' responses in an experiment.