Use the Figure Below to Answer the Following Questions

question 104

Multiple Choice

Use the figure below to answer the following questions.

Figure 27.2.3
There are no taxes in this economy.
-In Figure 27.2.3, the marginal propensity to import is

• A)0.
• B)0.1.
• C)0.25.
• D)0.3.
• E)0.6.

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Definitions:

Incidence Of Tax

The analysis of who bears the ultimate burden of a tax, whether it be consumers, producers, or others.

Excise Tax

A tax levied on the sale or use of specific products or transactions, often included in the price of goods like gasoline, alcohol, and tobacco.

Supply Shift

A change in the availability of a product or service, often influenced by factors such as production costs and technological advances, shifting the supply curve.

Excise Tax

A type of tax imposed on specific goods, services, or activities, often included in the price of products like gasoline, alcohol, and tobacco.