If We Wanted to Analyze the Effects of a $2

question 87

Multiple Choice

If we wanted to analyze the effects of a $2 unit tax graphically, we would shift the

• A) supply curve upward by $2.
• B) supply curve downward by $2.
• C) demand curve upward by $2.
• D) demand curve downward by $2.

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Definitions:

Capital Investment

The funds spent by a business to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

Land Reform

The process of redistributing land, typically from those with large holdings to those with none or less, with the intent of improving equality and agricultural productivity.

Governments

The organizational bodies that govern a community or nation, setting and administering public policy and exercising executive, political, and sovereign power.

Surplus Agricultural Labor

A condition in agricultural economies where there are more laborers available than are needed to cultivate the land, often leading to unemployment or underemployment in rural areas.