An Unintended Effect of a New Tax Placed on the Producers

question 39

Multiple Choice

An unintended effect of a new tax placed on the producers of good A may include

• A) a higher price paid by the consumers of good A.
• B) less consumers' surplus for the buyers of good A.
• C) fewer workers employed in the production of good A.
• D) all of the above

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Definitions:

Rational Consideration

The process of making decisions based on logical inference, facts, and analysis rather than emotions or intuition.

Scientific Management

A management theory that examines and combines different workflows to enhance economic effectiveness and increase workforce productivity.

Supervisory Support

The guidance, assistance, and resources provided by supervisors to help employees achieve job-related goals.

Contingency Theory

A management theory that suggests the most appropriate form of organizational structure or managerial action depends on the specific situational variables.