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

question 115

Multiple Choice

When a tax is imposed on a good or service,the

• A) revenue gained by the government is the excess burden.
• B) deadweight loss that arises from a tax is the excess burden.
• C) share of the tax paid by the buyer is the excess burden.
• D) share of the tax paid by the seller is the excess burden.
• E) amount the government collects as tax revenue is the deadweight loss from the tax.

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Definitions:

Safe Deposit Box

A secure container, usually found at a bank, where customers can store valuable personal items.

Bank Statement Adjustment

The process of modifying the balance on a bank statement to reflect transactions that have not been recorded by the bank by the end of the reporting period.

Company Books Adjustment

The process of altering entries in the accounting records to reflect more accurate figures or to record unrecorded transactions.

Control Environment

A collection of guidelines, procedures, and frameworks that establish the foundation for executing internal control throughout the organization.