If an Excise Tax Is Imposed on Beer and Collected

question 61

Multiple Choice

If an excise tax is imposed on beer and collected from the producers,the _____ curve will shift _____ by the amount of the tax.

• A)demand;upward
• B)demand;downward
• C)supply;upward
• D)supply;downward

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Definitions:

System Justification Theory

A theory suggesting that people have a psychological tendency to defend and justify the status quo, even at the expense of personal or group interest.

Social Identity Theory

Social identity theory is a psychological framework that posits individuals derive part of their identity and self-esteem from the groups to which they belong.

Status Quo

The existing state or condition of a situation, which is often seen as the standard or norm.

Entitativity

The perception or degree to which a group is seen as being a coherent, distinct, and unified entity.