When a Good Is Taxed

question 56

Multiple Choice

When a good is taxed,

• A)both buyers and sellers of the good are made worse off.
• B)only buyers are made worse off, because they ultimately bear the burden of the tax.
• C)only sellers are made worse off, because they ultimately bear the burden of the tax.
• D)neither buyers nor sellers are made worse off, since tax revenue is used to provide goods and services that would otherwise not be provided in a market economy.

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Definitions:

Leadership

The action of leading a group of people or an organization, or the ability to do this, which involves establishing a clear vision, sharing that vision with others so they will follow willingly, providing information, knowledge, and methods to realize that vision.

Power

The ability or capacity to influence or control the behavior of others or the course of events.

Manipulation

The act of skillfully controlling or influencing something or someone, often in a deceptive way.

Process Theories

Explanations focusing on how things happen through a sequence of actions or steps leading to a particular outcome.