Which of the Following Is True About an Excise Tariff

question 26

Multiple Choice

Which of the following is true about an excise tariff?

• A) Domestic firms' marginal cost curves are shifted up by the amount of the excise tariff.
• B) Foreign firms' average cost curves are shifted down by the amount of the excise tariff.
• C) Domestic firms' average cost curves are shifted up by the amount of the excise tariff.
• D) Foreign firms' marginal cost curves are shifted up by the amount of the excise tariff.

Understand the concept of capital rationing and its two types: soft and hard rationing.

Grasp the methods to test and validate sales projections and cost estimates.

Recognize the importance of strategic options and contingency planning in business scenarios.

Understand the concept of operating leverage and its effect on business risk.

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Definitions:

Human Resources

The abilities, skills, and health of human beings that contribute to the production of both current and future output. Investment in training and education can increase the supply of human resources.

Physical Resources

Tangible assets used in the production or delivery of goods and services, such as machinery, buildings, and raw materials.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources.

Opportunity Cost

Renouncing the possibility of gains from different alternatives by making a single choice.