In a Market with an Upward-Sloping Supply Curve and a Downward-Sloping

question 77

Multiple Choice

In a market with an upward-sloping supply curve and a downward-sloping demand curve, the effects of an excise tax are as follows except:

• A)Consumer surplus will be lower than with no tax.
• B)Producer surplus will be lower than with no tax.
• C)The impact on the government budget will be positive.
• D)The tax will generally lead to a deadweight gain.

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Definitions:

Max Weber

A foundational figure in sociology known for his theory on the Protestant ethic and the spirit of capitalism, and his contributions to the understanding of social authority, bureaucracy, and social stratification.

Glocalization

The practice of conducting business according to both local and global considerations, blending global objectives with local cultures and practices.

Multinational Chain Stores

Retail outlets that operate locations in multiple countries, offering standardized products or services across their locations.

Homogenizing Effects

The process of making things uniform or similar by blending diverse elements.