When a Tax Is Levied on a Good

question 122

Multiple Choice

When a tax is levied on a good,

• A)government revenues exceed the loss in total welfare.
• B)there is a decrease in the quantity of the good bought and sold in the market.
• C)the price that sellers receive exceeds the price that buyers pay.
• D)All of the above are correct.

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Definitions:

Defence Mechanism

Subconscious methods employed to safeguard someone from the anxiety that stems from impermissible sentiments or thoughts.

Reaction Formation

A defense mechanism where an individual unconsciously replaces an anxiety-producing or unacceptable thought or feeling with its opposite.

Unrealistic Amounts

Quantities or levels that are not achievable or practical based on current conditions, capacities, or resources.

Psychodynamic Theory

An approach in psychology that emphasizes systematic study of the psychological forces underlying human behavior, feelings, and emotions and how they might relate to early experience.