The Excess Burden of an Excise Tax

question 30

Multiple Choice

The excess burden of an excise tax

• A)is the price the consumer must pay above the free-market price.
• B)reflects the allocative efficiency of the tax.
• C)is the deadweight loss created by the tax.
• D)is the administrative cost of collecting the tax.
• E)is the total cost imposed on the producer by the tax.

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Definitions:

Collective Bargaining

The process where workers, through their unions, negotiate contracts with their employers to determine pay, work conditions, benefits, and other work-related issues.

Bad Faith Bargaining

Negotiations where one or more parties refuse to engage sincerely or with the intent to reach an agreement, typically violating principles of honesty and fairness.

National Labor Relations Act

A foundational US law enacted in 1935 that protects the rights of employees to organize, bargain collectively, and engage in concerted activities for mutual aid or protection.

Direct Dealing

A labor relations strategy where employers interact directly with employees rather than through union representatives.