When a Unit Tax Is Placed on Suppliers _____

question 40

Multiple Choice

When a unit tax is placed on suppliers _____.

• A)it will have the same effect as a twice as large excise tax placed on demanders
• B)it will have the same effect as a similar unit tax placed on demanders
• C)they will be able to shift the entire tax onto their resource suppliers
• D)they will be able to force demanders to pay the tax to the government

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Definitions:

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payee’s name on it.

Negotiate

The process of discussing something with another party to reach a mutually agreeable decision or deal.

Nonnegotiable

Refers to instruments or documents that cannot be transferred or assigned from one party to another by endorsement or delivery, limiting their exchangeability.

Additional Terms

Supplementary conditions or provisions added to a contract that were not mentioned in the original agreement but are negotiated before finalization.