The General Equilibrium Effects of an Excise Tax on Agricultural

question 17

Multiple Choice

The general equilibrium effects of an excise tax on agricultural commodities which would then be used to purchase books for school children would tend to:

• A)raise the price of agricultural commodities and lower the price of books, but leave the quantity of labor employed unchanged.
• B)raise the price of agricultural commodities and raise the price of books, and increase the quantity of labor employed.
• C)raise the price of agricultural commodities and raise the price of books, and decrease the quantity of labor employed.
• D)raise the price of agricultural commodities and raise the price of books, but leave the quantity of labor employed unchanged.

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Definitions:

Factorial Research Design

A study design that allows researchers to examine the effects of two or more independent variables simultaneously on dependent variables.

Main Effects

Refers to the individual impact of an independent variable on a dependent variable in an experiment or study.

SSA

SSA often refers to the sum of squares due to treatments or groups in analysis of variance (ANOVA), representing the variation attributable to different conditions or treatments.

SSB

The sum of squares between groups, a measure used in analysis of variance to compare the variance between different groups' means.