If a Specific Tax Is Implemented

question 20

Multiple Choice

If a specific tax is implemented

• A)the firm's average cost curve shifts up, resulting in lower profits.
• B)the after-tax marginal cost curve shifts, resulting in lower quantity produced.
• C)there is less profit per unit sold.
• D)All of the above.

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Definitions:

Income Taxes

Taxes levied by governments on the income earned by entities (individuals or corporations), with rates varying by income level.

Part-time Basis

Refers to employment where the worker is not working full-time and usually works fewer hours.

Form W-2

An IRS tax form used in the United States to report wages paid to employees and the taxes withheld from them.

Gross Wages

The total amount of money earned by an employee before any deductions or taxes are taken out.