In the Short Run,specific Taxes on a Firm Result In

question 21

Multiple Choice

In the short run,specific taxes on a firm result in:

• A)price increases which may not persist in the long run.
• B)an increase in consumer surplus because the tax permits spending in additional government services.
• C)shortages of the good being taxed.
• D)an increase in producer surplus because of the rise in price.

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Definitions:

Hyoid Bone

A horseshoe-shaped bone in the neck that supports the tongue and is the only bone in the body not attached to another bone.

Larynx

The voice box located in the throat, responsible for producing sound, protecting the trachea during swallowing, and regulating airflow.

Trigeminal Nerve

The fifth cranial nerve responsible for sensory data from the face and motor functions such as biting and chewing.

Ansa Cervicalis

A looped network of nerves in the neck that supplies motor innervation to some of the muscles of the larynx and the infrahyoid muscles.