When a Unit Tax of $0

question 2

Multiple Choice

When a unit tax of $0.50 is levied on a product

• A) the entire $0.50 is paid by the consumer.
• B) the entire $0.50 is paid by the producer.
• C) both the consumer and producer pay $0.50 each.
• D) the consumer pays part of the $0.50 and the producer pays the rest.

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Definitions:

Units

Basic quantities used to specify measurements in various fields, such as length, mass, and time.

Diameter

A straight line passing from side to side through the center of a body or figure, especially a circle or sphere.

Gauge

A measure of the thickness or size of various items, like wire or body piercing jewelry, or a device for measurement.

Measurable Dose

A quantity of a substance, especially a medicine, that can be accurately measured and is suitable for administration.