In a Market with an Upward-Sloping Supply Curve and a Downward-Sloping

question 77

Multiple Choice

In a market with an upward-sloping supply curve and a downward-sloping demand curve, the effects of an excise tax are as follows except:

• A)Consumer surplus will be lower than with no tax.
• B)Producer surplus will be lower than with no tax.
• C)The impact on the government budget will be positive.
• D)The tax will generally lead to a deadweight gain.

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Definitions:

Growth and Development

The process through which humans and other organisms undergo changes in size, shape, and function over time, encompassing physical, cognitive, and emotional development.

Life Span

The maximum duration of life of a species or individual, often considered in the context of factors that influence the length and quality of life.

Aging and Illness

The relationship and impact that the natural aging process has on the onset and management of diseases.

Deconditioning

The loss of physical fitness or muscle strength due to inactivity or prolonged rest.