When a Tax Is Levied on Buyers of a Good

question 98

Multiple Choice

When a tax is levied on buyers of a good,

• A)government collects too little revenue to justify the tax if the equilibrium quantity of the good decreases as a result of the tax.
• B)there is an increase in the quantity of the good supplied.
• C)a wedge is placed between the price buyers pay and the price sellers effectively receive.
• D)the effective price to buyers decreases because the demand curve shifts leftward.

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Definitions:

Occipital Lobe

The rearmost lobe in the brain, responsible for processing visual information from the eyes.

Cortical Regions

Areas of the brain's cerebral cortex involved in various higher-level functions including sensation, perception, memory, and voluntary physical action.

Frontal Lobe

The frontal lobe is a part of the brain located at the front of the cerebral cortex, involved in decision making, problem solving, control of purposeful behaviors, consciousness, and emotions.

Occipital Lobe

The rearmost lobe in each cerebral hemisphere of the brain, responsible for processing visual information.