In the Long Run,the Imposition of an Excise Tax in a Constant-Cost

question 25

Multiple Choice

In the long run,the imposition of an excise tax in a constant-cost competitive industry will cause price to:

• A)rise by the amount of the tax.
• B)fall by the amount of the tax.
• C)rise by less than the amount of the tax.
• D)fall by more than the amount of the tax.

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Definitions:

Anxiety

A feeling of worry, nervousness, or unease, often about an imminent event or something with an uncertain outcome.

Stimulus Generalization

is the process in which a response is elicited by stimuli that are similar but not identical to the conditioned stimulus in a conditioning paradigm, demonstrating the ability to generalize learning to new stimuli.

Conditioned Response

A learned reaction to a previously neutral stimulus that has become associated with an unconditioned stimulus.

Original CS

In classical conditioning, the original conditioned stimulus that is neutral at first but becomes associated with an unconditioned stimulus to elicit a conditioned response.