As the Tax Wedge Associated with a Given Economic Activity

question 159

Multiple Choice

As the tax wedge associated with a given economic activity gets smaller, we would expect

• A)more of that economic activity to occur.
• B)the distortions caused by taxes on that activity to be greater.
• C)people to engage in less of that particular activity.
• D)no change in the practice of that activity until the tax wedge ultimately disappears.
• E)people will spend more on that economic activity.

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Definitions:

Placental Mammals

Mammals that give birth to live, fully developed young that have been nourished in the womb via a placenta.

Marsupial Mammals

A group of mammals characterized by giving birth to relatively undeveloped offspring which typically continue to develop in a pouch on the mother's body.

Uterus

The reproductive organ in female mammals where fertilized eggs implant and develop into a fetus.

CitT Gene

A gene encoding a protein that facilitates the transport of citrate across cell membranes, often studied in bacterial species.