What Results from the Imposition of a Tax on a Product

question 49

Multiple Choice

What results from the imposition of a tax on a product?

• A) Some government surplus is transferred to the consumers and producers.
• B) Some consumer surplus is transferred from buyers to producers.
• C) Some producer surplus is transferred from sellers to consumers.
• D) Some consumer and producer surplus is transferred from buyers and sellers to the government.

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Definitions:

Low-Interest Loans

Loans offered with a reduced interest rate, making them more affordable for the borrower, often used to stimulate economic growth or support specific sectors.

Advertising

Advertising is a form of marketing communication used to promote or sell a product, service, or idea through various media channels to influence consumer behavior.

Public Education

An education system funded and administered by the government, ensuring free access to education for all children.

Defense

Activities related to protecting a country from external threats and ensuring national security.