In the Short Run,specific Taxes on a Firm Result In

question 21

Multiple Choice

In the short run,specific taxes on a firm result in:

• A)price increases which may not persist in the long run.
• B)an increase in consumer surplus because the tax permits spending in additional government services.
• C)shortages of the good being taxed.
• D)an increase in producer surplus because of the rise in price.

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Definitions:

Positron Emission Tomography

An imaging test that helps reveal how your tissues and organs are functioning, using a small amount of radioactive material.

Magnetic Resonance Imaging

A medical imaging technique used to visualize internal structures of the body in detail using magnetic fields and radio waves.

Computerised Tomography

A diagnostic imaging technique that uses computer-processed combinations of many X-ray measurements taken from different angles to produce cross-sectional images of specific areas of a scanned object.

Electroencephalograph

A device used to record the electrical activity of the brain, commonly known as an EEG.