Which of the Following Statements Is Correct

question 223

Multiple Choice

Which of the following statements is correct?

• A) Whenever a per-unit tax is imposed, sellers always pass on the full amount of the tax to consumers in the form of higher prices.
• B) The burden of a per-unit tax on cigarettes would likely fall more on consumers than would the burden of a tax on imported bottled water.
• C) The burden of a per-unit tax is always equally shared between producers and consumers.
• D) When a per-unit tax is imposed, the total losses to producers and consumers exactly equal the amount of revenue collected by the government.

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Definitions:

Empathy

The ability to understand and share the feelings of another individual from their perspective.

Altruistic Helping

Altruistic helping is a form of selfless assistance provided to others without the expectation of reward or benefit to oneself, driven by a genuine desire to improve others' well-being.

Zero-sum Helping

A situation where the act of helping someone results in a direct disadvantage or cost to someone else, making the net change in welfare zero.

Egoistic Helping

Helping behavior motivated by the desire to improve one's own welfare rather than that of others.