A Specific Tax

question 101

Multiple Choice

A specific tax

• A)increases supply by shifting the curve up.
• B)is a tax that is paid only by producers.
• C)is a per-unit tax on a good.
• D)is a percentage tax on the total value of sales.
• E)is proportionate to the total value of a good sold.

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Definitions:

American Depository Receipts

Certificates issued by U.S. banks representing a specified number of shares in a foreign company's stock, traded on U.S. financial markets.

S&P 500 Portfolio

A portfolio of investments that aims to mimic the performance of the S&P 500, a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States.

Market Portfolio

A theoretical portfolio of all investable assets, weighted by market capitalization, that represents the entire market.

World Equities

Shares in companies located around the globe, representing ownership across different countries and industries.