What Does a Tax Placed on a Good Do

question 12

Multiple Choice

What does a tax placed on a good do

• A)It causes the price of the good to fall.
• B)It affects buyers of the good, but not sellers.
• C)It causes the size of the market for the good to shrink.
• D)It affects sellers of the good, but not buyers.

Apply critical thinking strategies to improve decision-making processes.

Understand the implications of pre-editing phase actions on final decision outcomes.

Appreciate the psychological aspects influencing decision maker’s bias towards a selected option.

Recognize the necessary frame of mind to achieve objectivity in decisions.