When a Tax Is Imposed,some of the Lost Surplus Becomes

question 140

Multiple Choice

When a tax is imposed,some of the lost surplus becomes tax revenues and the rest is:

• A) transferred to consumers.
• B) transferred to producers.
• C) transferred to recipients of government services.
• D) simply lost.

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Definitions:

Ethics of Exchange

Principles and standards that guide fair and equitable trade practices between parties in a transaction.

Right to Choose

The consumer’s entitlement to have a variety of options when selecting goods or services, emphasizing the importance of competition and quality in markets.

Economic Espionage

The illegal practice of stealing confidential information from businesses to gain a competitive advantage.

Trade Secrets

Confidential business information that provides a company a competitive edge.