The General Equilibrium Effects of an Excise Tax on a Commodity

question 31

Multiple Choice

The general equilibrium effects of an excise tax on a commodity which would then be used to fund improvements to our national parks:

• A)would probably raise the price of the commodity and raise the price of labor in the national park system.
• B)would probably lower the price of the commodity and raise the price of labor in the national park system.
• C)would probably raise the price of the commodity and raise the price of labor in the economy as a whole.
• D)would probably raise the price of the commodity and lower the price of labor in the economy as a whole.

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Definitions:

Occupied π Molecular Orbitals

π molecular orbitals that contain electrons; they are involved in bonding between atoms and are crucial for understanding the reactivity of molecules.

Cyclobutadiene

A highly unstable, conjugated diene with the molecular formula C4H4, characterized by a square planar structure that challenges classical bonding theories.

[4]annulene

A cyclic compound made up of four conjugated carbon atoms, known for its planar structure and aromatic behavior despite having 4 π-electrons, which does not follow Huckel's rule for aromatic stability.

Aromatic

Relates to organic compounds containing one or more planar ring structures with delocalized π-electrons, exhibiting unique stability and reactions.