There Will Be a Surplus of a Product When

question 88

Multiple Choice

There will be a surplus of a product when

• A) price is below the equilibrium level.
• B) the supply curve is downward sloping and the demand curve is upward sloping.
• C) the demand and supply curves fail to intersect.
• D) consumers want to buy less than producers offer for sale.

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Definitions:

Direct Tax

A tax levied directly on an individual's or organization's income or wealth, such as income tax or property tax.

Indirect Tax

A tax collected by an intermediary from the person who bears the ultimate economic burden of the tax; examples include sales taxes and value-added taxes.

Social Security Tax

A tax levied on both employers and employees to fund the Social Security program, which provides benefits for retirees, disabled individuals, and survivors of deceased workers.

Personal Income Tax

A tax levied on individuals' earnings, including wages, salaries, and investment income, often progressive in nature.