In the Short Run,an Excise Tax Placed on All Firms

question 49

Multiple Choice

In the short run,an excise tax placed on all firms in an increasing-cost competitive industry will result in:

• A)a fall in price and an increase in output.
• B)an increase in output and a fall in price.
• C)a fall in both price and output.
• D)an increase in price and a fall in output.

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Definitions:

Social-Responsibility Norm

is a societal rule that people should help those who need assistance, based on the expectation that helping others is the right thing to do.

Altruism

The selfless concern for the well-being of others, often leading to acts of kindness without the expectation of reward.

Superordinate Goals

Objectives that require two or more groups to work together to achieve, thus reducing conflict by uniting the groups with common interests.

Disaster Relief

Assistance provided to individuals and communities in an effort to help them recover from catastrophic events.