With Free Entry and Exit in a Competitive Market, Capital

question 136

Multiple Choice

With free entry and exit in a competitive market, capital

• A)moves to declining industries.
• B)moves to growing industries.
• C)does not move.
• D)becomes more expensive.
• E)does not reflect market demand.

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Definitions:

Tax Burden

The measure of taxation imposed on individuals, businesses, or goods, often expressed as a percentage of income or sales price.

Excise Tax

A tax levied on specific goods, services, or transactions, often to discourage consumption or generate revenue for specific purposes.

Tax Revenue

The income that is gained by governments through taxation, which is used to fund public services and government obligations.

Government

The organization, machinery, or agency through which a political unit exercises authority and performs functions and which is usually classified as democratic, authoritarian, etc.