When a Tax Is Imposed on a Good or a Service,the

question 206

Multiple Choice

When a tax is imposed on a good or a service,the marginal benefit of the last unit bought ________ the marginal cost of the last unit.

• A) is equal to
• B) is greater than
• C) is less than
• D) None of the above answers is correct because there is no consistent relationship between the marginal benefit of the last unit and its marginal cost.
• E) is not able to be compared to

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Definitions:

Eardrum

A thin membrane that separates the outer ear from the middle ear and vibrates in response to sound waves.

Pressure

The force applied perpendicular to the surface of an object per unit area over which that force is distributed.

Stirrup

A bone in the middle ear, also known as the stapes, that plays a critical role in the process of hearing by transmitting sound vibrations.

Menopause

A natural biological process marking the end of a woman's reproductive years, characterized by the cessation of menstrual periods.