If an Excise Tax Is Imposed on Restaurant Meals

question 50

Multiple Choice

If an excise tax is imposed on restaurant meals,

• A) fewer meals will be produced and sold
• B) more meals will be produced and sold
• C) the government's tax revenue will fall
• D) the market price of meals will decrease
• E) restaurants will sell more meals,but at a lower price per meal

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Definitions:

Sale-On-Approval

A transaction in which goods are delivered to a buyer for examination with the understanding that the sale is final only if the goods are approved.

Sale-Or-Return

A commercial agreement where goods are provided with the option of return if they fail to be sold.

Formal Ball Gowns

Elegant, floor-length dresses designed for formal social events or balls.

Risk Of Loss

The liability for the potential loss or damage to goods during transportation or storage.