A Consumer Derives Utility for "All Other Goods," G,and Cigarettes,s

question 35

Multiple Choice

A consumer derives utility for "all other goods," g,and cigarettes,s.The price of "all other goods" equals $9 and the price of cigarettes is $10.Now suppose the government implements a $0.50 per-unit tax on cigarettes to encourage a decrease in smoking.How does the tax affect the marginal rate of transformation,MRT?

• A) The MRT will decrease to - .
• B) The MRT will increase to - .
• C) The MRT will increase to - + 0.05.
• D) The MRT will decrease to - - 0.05.

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Definitions:

Expressive Role

A term in sociology referring to the responsibility for maintaining emotional comfort and harmony within the family.

Structural-functional Theory

A sociological theory that views society as a complex system whose parts work together to promote solidarity and stability.

Latent Functions

Unintended, unrecognized consequences of activities that help a system adjust.

Manifest Functions

The recognized and intended consequences of any social pattern, process, or structure.