When a Tax Is Levied on a Good or Service

question 13

Multiple Choice

When a tax is levied on a good or service,

• A) the quantity of the good sold will not change.
• B) neither the price nor the quantity of the good sold will change.
• C) the price of the good sold will not change.
• D) the price and the quantity of the good sold will change.

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Definitions:

Public Scrutiny

The critical observation or examination by the general public, often focusing on actions, decisions, or performance.

Transparency

The quality of being easily seen through or understood, often related to the open and honest communication within organizations or governance.

Systematic Thinking

Approaches problems in a rational and analytical fashion.

Programmed Decisions

Decisions that are made using a rule, procedure, or quantitative method that have been developed for recurring problems or situations.