The General Equilibrium Effects of an Excise Tax on a Commodity

question 31

Multiple Choice

The general equilibrium effects of an excise tax on a commodity which would then be used to fund improvements to our national parks:

• A)would probably raise the price of the commodity and raise the price of labor in the national park system.
• B)would probably lower the price of the commodity and raise the price of labor in the national park system.
• C)would probably raise the price of the commodity and raise the price of labor in the economy as a whole.
• D)would probably raise the price of the commodity and lower the price of labor in the economy as a whole.

---

Definitions:

Buzz Marketing

is a viral marketing strategy that focuses on maximizing the word-of-mouth potential of a campaign or product, often relying on unconventional interactions to stimulate discussions among consumers.

Webcam Users

Individuals who utilize computer-connected cameras to broadcast or record themselves, participate in video calls, or engage in live streaming activities.

Park Images

Visual representations that capture the essence, layout, and characteristics of parks, often used in marketing or planning.

Dynamic Pricing

A pricing strategy where prices are adjusted in real-time based on demand, supply, and other external factors.