An Analysis of the Effect of Excise Taxes on Markets

question 21

Multiple Choice

An analysis of the effect of excise taxes on markets allows us to conclude that:

• A)when the price elasticity of supply is equal to zero,an excise tax falls entirely on the consumers.
• B)when the price elasticity of demand is lower than the price elasticity of supply,an excise tax falls mainly on the producers.
• C)whether the tax is levied on consumers or producers,the quantity sold will be the same.
• D)when the price elasticity of demand is higher than the price elasticity of supply,an excise tax falls mainly on the consumers.

Understand the effect of unanticipated inflation on various economic actors.

Grasp the structure of the labor force and the definition of unemployment.

Understand the phases of the business cycle and their characteristics.

Differentiate between true and false statements regarding unemployment benefits and the labor force.

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Definitions:

Pectoralis Major

The pectoralis major is a large chest muscle that contributes to arm flexion, rotation, and the movement of the shoulder.

Pelvic Diaphragm

A muscular sheet at the base of the pelvis, consisting mainly of the levator ani and the coccygeus muscles, which supports pelvic organs.

Levator Ani

A group of muscles in the pelvis that support the pelvic organs.

Bulbospongiosus

A muscle of the perineum that acts to compress the bulb of the urethra, aiding in the expulsion of urine or semen.