A Tax Placed on a Good

question 202

Multiple Choice

A tax placed on a good

• A)causes the effective price to sellers to increase.
• B)affects the welfare of buyers of the good but not the welfare of sellers.
• C)causes the equilibrium quantity of the good to decrease.
• D)creates a burden that is usually borne entirely by the sellers of the good.

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Definitions:

ANOVA

A statistical method (Analysis of Variance) used to assess whether there are any statistically significant differences between the means of three or more independent (unrelated) groups.

Tukey's

A statistical method, commonly Tukey's range test or Tukey's Honest Significant Difference (HSD) test, used to find means that are significantly different from each other.

LSD

Lysergic acid diethylamide, a potent psychoactive drug, or in a statistical context, it might refer to the Least Significant Difference test for comparing means.

Randomized Block Design

A statistical experimental design that aims to reduce confounding variables by grouping similar experimental units into blocks before randomly assigning treatments within each block.