When a Tax Is Imposed on a Good,what Do We

question 172

Multiple Choice

When a tax is imposed on a good,what do we know about the losses to buyers and sellers

• A)They are equal to the revenue raised by the government.
• B)They are less than the revenue raised by the government.
• C)They exceed the revenue raised by the government.
• D)They cannot be compared to the tax revenue raised by the government since the amount of the tax will vary from good to good.

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Definitions:

Future Event

An occurrence or situation that has not yet happened but is expected or likely to occur.

Withholding Allowances

Exemptions claimed by employees to reduce the amount of income tax withheld from their paychecks.

Income Tax

A tax that governments impose on financial income generated by all entities within their jurisdiction.

Withholding Allowance Certificate

A form used by employees to indicate their tax status to employers, determining how much federal income tax to withhold from their earnings.