If the Government Imposes a Per-Unit Tax on Sales of an Industry's

question 224

Multiple Choice

If the government imposes a per-unit tax on sales of an industry's product, then we would expect

• A) the supply curve in that industry would shift to the left.
• B) the supply curve in that industry would shift to the right.
• C) the demand curve for that industry would shift to the right.
• D) the demand curve for that industry would shift to the left.

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Definitions:

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than other entities, leading to specialized production and trade benefits.

Toy Cars

Small-scale replicas of automobiles, typically designed for play or collection.

Dinosaur Figures

Toy replicas of dinosaurs, often used for educational or recreational purposes.

Opportunity Cost

The value of the next best alternative that is foregone when making a decision or choosing one option over another.