Recently the Government Considered Adding an Excise Tax on CDs

question 168

Multiple Choice

Recently the government considered adding an excise tax on CDs that can be used to record music and CD players that can record discs. If this tax were enacted, the most likely effect would be:

• A) that consumers would pay a higher price and producers would sell fewer of these CDs and CD players than before the tax.
• B) no change in consumption or the prices paid by consumers of these CDs and CD players.
• C) that consumers would pay a lower price and producers would receive a higher price for these CDs and CD players than before the tax.
• D) an increase in economic activity due to the tax.

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Definitions:

World Systems Theory

A sociological perspective that emphasizes the economic and political interconnectedness and dependency of countries globally, often classifying them into core, semi-peripheral, and peripheral nations.

Colonization

The act of establishing control over indigenous people of an area and exploiting it economically.

Second World War

A global conflict that took place from 1939 to 1945, involving most of the world's nations and marked by significant events that shaped the modern world.

Independence Movements

Are political and social movements seeking to gain or regain autonomy for a geographic region from a larger or controlling power.