-If a Unit Excise Tax Is Placed on a Good

question 65

Multiple Choice

-If a unit excise tax is placed on a good for which the demand is very unresponsive to a price change, then

• A) the government generally pays the majority of the tax.
• B) the consumers generally pay the majority of the tax.
• C) the producers generally pay the majority of the tax.
• D) producers and consumers pay equal portions of the tax.

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Definitions:

Concession Bargaining

A negotiation process where labor unions agree to give up previous benefits in exchange for something else, often to avoid worse outcomes.

Decline of Manufacturing

Refers to the decrease in the production of goods in factories and the reduction of jobs in the manufacturing sector, often due to automation, globalization, and shifts towards a service-based economy.

National War Labor Board

A historical government agency established during wartime to resolve labor disputes and ensure efficient production and labor harmony.

Institutionalizing

The process of embedding certain practices, norms, or policies within an organization, making them an established part of its culture or structure.