When a Good Is Taxed

question 56

Multiple Choice

When a good is taxed,

• A)both buyers and sellers of the good are made worse off.
• B)only buyers are made worse off, because they ultimately bear the burden of the tax.
• C)only sellers are made worse off, because they ultimately bear the burden of the tax.
• D)neither buyers nor sellers are made worse off, since tax revenue is used to provide goods and services that would otherwise not be provided in a market economy.

---

Definitions:

Responsible Ways

Approaches or methods characterized by accountability, ethical considerations, and thoughtful decision-making.

Reframes

The process of changing the way something is viewed or considered, often to provide a new perspective or insight.

Opportunity

A set of circumstances that makes it possible to do something or for something to happen, often leading to new experiences or growth.

Advanced Ways

Innovative or evolved methods and strategies that surpass traditional or basic approaches in effectiveness.