When a Tax Is Imposed on a Good or Service

question 132

Multiple Choice

When a tax is imposed on a good or service, buyers respond only to the price that ________ the tax, and sellers respond to the price that ________ the tax.

• A) excludes; includes
• B) includes; excludes
• C) excludes; excludes
• D) includes; includes

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Definitions:

Brainstorming

The engagement of group members in an open, spontaneous discussion of problems and ideas.

Freewheeling

Characterized by a carefree or unconstrained approach, often implying a lack of rules or structure.

Teams

Groups of people working together towards a common goal, often complementing each other's skills and strengths.

Groupthink

A tendency for highly cohesive teams to lose their evaluative capabilities.