An Ad Valorem Tax Causes the Supply Curve To

question 15

Multiple Choice

An ad valorem tax causes the supply curve to:

• A) shift to the right.
• B) become flatter.
• C) become steeper.
• D) shift to the left.

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Definitions:

Moral Hazard

The situation where one party to an agreement can take risks because they know they will not have to bear the full consequences of their actions.

Deductibles

Deductibles are the amounts that insured individuals must pay out of pocket for covered services before their insurance begins to pay.

Premiums

Payments made for insurance coverage or additional costs above the standard price.

Franchisees

Individuals or companies that purchase the rights to operate a branch of a larger company or brand, using the franchisor’s trademarks, systems, and business model.