If Higher Taxes Raise the Unit Cost of a Competitive

question 90

Multiple Choice

If higher taxes raise the unit cost of a competitive industry, then in the long run, industry supply

• A)and market price decrease.
• B)decreases and market price increases.
• C)increases and market price decreases.
• D)and market price increase.
• E)and market price remain constant.

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Definitions:

Secondary Appraisals

The evaluation of one's ability to cope with the initial primary stressor, reassessing its significance and potential outcomes.

Freudian Theory

A psychological theory developed by Sigmund Freud that posits unconscious forces such as wishful impulses and childhood experiences significantly influence behavior and mental states.

Twenty-First Century

The current century, spanning from the year 2001 to 2100.

Pleasure Principle

A concept in psychoanalytic theory referring to the driving force of the id that seeks immediate gratification of all desires, wants, and needs.