-If a Unit Excise Tax Is Placed on a Good

question 65

Multiple Choice

-If a unit excise tax is placed on a good for which the demand is very unresponsive to a price change, then

• A) the government generally pays the majority of the tax.
• B) the consumers generally pay the majority of the tax.
• C) the producers generally pay the majority of the tax.
• D) producers and consumers pay equal portions of the tax.

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Definitions:

Mainstream Reader

A person who prefers reading popular or widely accepted literature, typically the most common and commercially successful works.

Baby Boomers

A demographic group referring to people born during the post-World War II baby boom approximately between 1946 and 1964.

Largest Population

The highest number of individuals residing within a particular geographic area, city, or country.

Consumer Group Profiling

The practice of categorizing consumers into groups with similar characteristics for marketing purposes.