Taxes Almost Always Cause Producer Prices to Decrease

question 61

Multiple Choice

Taxes almost always cause producer prices to decrease.How much they decrease depends on

• A) the elasticities of supply and demand.
• B) the amount of the tax.
• C) who is legally obligated to pay the tax.
• D) who pays the tax out of pocket.
• E) how often the government collects the tax.

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Definitions:

Financial Incentives

Monetary rewards given to motivate employees, increase productivity, or achieve certain business goals.

Herzberg's Theory

A framework in management psychology developed by Frederick Herzberg that differentiates between motivation factors that increase job satisfaction and hygiene factors that, if inadequate, can cause job dissatisfaction.

Goal-Setting

The process of identifying something that you want to accomplish and establishing measurable objectives and timeframes.

Generation X

The demographic cohort following the baby boomers, typically defined as being born from the early-to-mid 1960s to the early 1980s.