Which of the Following Statements About Excise Taxes Is TRUE

question 122

Multiple Choice

Which of the following statements about excise taxes is TRUE?

• A) The producer will increase the price of the good by the amount of the excise tax.
• B) The equilibrium price will increase and the equilibrium quantity will remain unchanged.
• C) Both the consumer and producer pay part of the excise tax.
• D) Consumers will refuse to pay excise taxes forcing the producers to pay it.

---

Definitions:

Critical Thinking Skills

The ability to actively and skillfully conceptualize, apply, analyze, synthesize, and evaluate information to reach an answer or conclusion.

Dream-Work

In psychoanalysis, the process by which the unconscious mind alters the content of dreams to make them less distressing and more palatable to the waking mind.

Neurotic Symptoms

Psychological symptoms that are in response to stress but the individual is still in touch with reality, such as anxiety or depression.

Freud

Refers to Sigmund Freud, an Austrian neurologist known for founding psychoanalysis.