If All Relevant Private and Social Costs and Benefits Are

question 90

Multiple Choice

If all relevant private and social costs and benefits are included in the demand and supply curves for a particular good,then imposing a tax will

• A)only increase the price paid by consumers.
• B)only reduce the price received by producers.
• C)reduce production and consumption below the efficient level.
• D)have no significant effect on price or quantity.

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Definitions:

Crude Oil

A natural, unrefined petroleum product composed of hydrocarbon deposits and other organic materials.

Distillation

A process of separating components from a liquid mixture by selective boiling and condensation, commonly used in the purification of water, alcohol, and chemicals.

Hydrocarbon

is an organic compound consisting entirely of hydrogen and carbon atoms, commonly found in fossil fuels and as the basis of various organic substances.

Petroleum

A naturally occurring liquid found beneath the Earth's surface that can be refined into fuel and various chemical products.