A Unit Tax

question 62

Multiple Choice

A unit tax

• A) is based on the value of the good being sold.
• B) is a constant tax assessed on each unit of a good sold.
• C) is the primary tax studied in dynamic tax analysis.
• D) does not influence equilibrium price and quantity.

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Definitions:

Investment

The dedication of assets to achieve an increase in value over time, including purchases of securities, real estate, and other items with the expectation of generating future income or profit.

Target Costing

A pricing strategy where a product's selling price is determined first based on market conditions, and then the goal is to meet or come under this price through cost control and design efficiencies.

Minimum Return

The lowest acceptable rate of return on an investment that a person or company would consider worthwhile.

Investment

The allocation of resources, usually money, in expectation of generating an income or profit.