What Determines the Proportion of a Unit Excise Tax That

question 115

Multiple Choice

What determines the proportion of a unit excise tax that will be passed on to consumers in the form of higher prices?

• A) the nature of the projects funded by the tax
• B) the number of additional taxes that consumers have to pay
• C) the popularity of the tax
• D) the degree to which quantity demanded and supplied of the good respond to price changes

---

Definitions:

Bipedalism

The ability to walk upright on two legs, a key feature in human evolution.

Savannah Environment

A landscape characterized by open grasslands with scattered trees, often found in Africa, which supports a diverse ecosystem including many grazing animals and predators.

Recent African Origins

A theory proposing that modern humans originated relatively recently in Africa and then dispersed to other continents.

Geographically Distinct

Characterized by features or qualities that differentiate one geographical area from another, often due to natural boundaries, climate, or landscapes.