Suppose an Excise Tax of $0

question 67

Multiple Choice

Suppose an excise tax of $0.75 is imposed on every pack of cigarettes sold and sellers are responsible for paying this tax.How would the imposition of the tax be illustrated in a graph?

• A)The supply curve for cigarettes would shift up by $0.75.
• B)The supply curve for cigarettes would shift up by less than $0.75.
• C)The supply curve for cigarettes would shift up by more than $0.75.
• D)The supply curve for cigarettes would shift down by $0.75.

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Definitions:

Good Faith Bargaining

The principle that both parties in negotiations, such as employers and unions, must participate honestly and sincerely to reach a mutually acceptable agreement.

Careless Worker Model

The early approach to safety in the workplace, which assumed that most accidents were due to workers’ failure to be careful or to protect themselves.

Accidents

Unplanned events that result in injury or harm to individuals, damage to property, or a combination thereof.

Industrial Diseases

Ailments contracted as a result of exposure to risk factors or unhealthy conditions in the workplace.