If an Excise Tax Is Imposed on a Good or Service

question 40

Multiple Choice

If an excise tax is imposed on a good or service,

• A) the supply curve shifts upward
• B) the supply curve shifts downward
• C) the price paid by consumers decreases
• D) the net price received by sellers increases
• E) the quantity produced and sold increases

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Definitions:

Foreign Policymaking

The process by which governments make decisions about their relationships with other countries, including trade, treaties, defense, and humanitarian aid.

War Powers Act

A federal law intended to check the U.S. president's power to commit the United States to an armed conflict without the consent of the U.S. Congress.

Foreign Policy Powers

The authority granted primarily to the executive branch of the government to direct international relations and negotiate with foreign entities.

Nuclear Proliferation

The spread of nuclear weapons and technology to nations which do not currently have them.