The Most Important Difference Between Unit Excise Taxes and Ad

question 39

Multiple Choice

The most important difference between unit excise taxes and ad valorem excise taxes is _____.

• A)the unit tax will change in response to a change in the price of the taxed good,while the ad valorem tax will not
• B)the unit tax will not change in response to a change in the price of the taxed good,while the ad valorem tax will
• C)the unit tax increases in response to a change in the price of the taxed good,while the ad valorem tax will decline
• D)the unit tax declines in response to a change in the price of the taxed good,while the ad valorem tax will increase

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Definitions:

Frictional Unemployment

represents short-term unemployment that occurs when workers are between jobs or entering the labor force for the first time.

Labor Force

The total number of people employed or actively seeking employment in a country or region.

Labor Force

The total number of people employed or actively seeking employment in a given economic territory or nation.

Structurally Unemployed

individuals who are unemployed due to structural changes in the economy that make their skills or industries obsolete.