Which of the Following Statements About the Effects of a Tax

question 71

Multiple Choice

Which of the following statements about the effects of a tax on a good is true?

• A)A 10-cent tax charged to a merchant for every bag of potato chips the merchant sells is paid entirely by the merchant.
• B)When price elasticity of supply is very high, the deadweight loss from a per-unit tax on a good is relatively low.
• C)When price elasticity of demand is very low, the deadweight loss from a per-unit tax on a good is relatively high.
• D)The greater the price elasticity of demand for a good, the greater the cost to society of a tax on that good.
• E)A $1,000 tax imposed on car dealers for every car sold will cause the prices of cars to rise $1,000.

Understand the advantages of transforming paragraphs into lists.

Learn where to properly place transitional words or phrases.

Identify ideal paragraph length and techniques for dividing long paragraphs.

Recognize the importance of delivering bad news appropriately in a paragraph.

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Definitions:

Advance Subscription Sales

Revenue received from customers for subscriptions that have been paid for in advance but the services have not yet been delivered.

Company Mails

Refers to the official correspondences, both electronic and physical, distributed within or from a company.

First Quarterly Journal

A periodical report covering the initial three months of the fiscal year, often containing financial statements, performance evaluations, and future outlooks.

Liabilities

Financial obligations or debts owed by a business to external parties or stakeholders.