If the Same Fine Is Imposed on Buyers and Sellers

question 93

Multiple Choice

If the same fine is imposed on buyers and sellers of an illegal good so that the cost of breaking the law is the same for both, then

• A) there is more government revenue collected than with an excise tax on the good.
• B) there is no deadweight loss in this market because the extra producer surplus will exactly offset the lost consumer surplus.
• C) the supply and demand curves both shift leftward by equal amounts.
• D) the equilibrium price of the good definitely increases.

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Definitions:

Stakeholders

Individuals or groups who have an interest in the decisions and actions of a business or organization, including employees, shareholders, customers, and community members.

HR Professionals

Skilled individuals who oversee recruiting, training, employee relations, compensation, and benefits within organizations.

Career Opportunities

The prospects or openings available for professional growth and advancement within a field or organization.

Ethical

Pertaining to or dealing with morals, the principles of morality concerning right and wrong behavior.