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:

Conflict

A struggle or clash between opposing forces, interests, or ideas, which can occur at individual, group, or societal levels.

Differential Association

A theory in sociology suggesting that individuals learn criminal behavior from their environment and personal associations.

Edwin Sutherland

An American sociologist known for pioneering the theory of differential association, which suggests that criminal behavior is learned through social interactions.

Socialization

The process by which people learn their culture. They do so by entering and disengaging from a succession of roles and becoming aware of themselves as they interact with others.