If the Government Imposed a R10 000 Tax on Every

question 16

Multiple Choice

If the government imposed a R10 000 tax on every individual,

• A) this would be an equitable tax.
• B) allocative efficiency would have to be sacrificed.
• C) this would be an efficient tax.
• D) this would be an income tax.

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Definitions:

Short-run Expansion Path

The route a firm takes to increase output by optimizing the combination of inputs used, given at least one fixed input, over a short period.

Variable Input

A production input whose quantity can be changed in the short term to influence output.

Fixed

Related to something that is unchanging, constant, or securely attached and not subject to variation.

SAC Curves

Short-run average cost curves represent how a firm's average costs vary with output in the short term.