When a Tax Is Imposed on Some Good,what Happens to the Amount

question 49

Multiple Choice

When a tax is imposed on some good,what happens to the amount of the good bought and sold?

• A) It increases.
• B) It decreases.
• C) It decreases,but only if the tax is imposed on producers.
• D) It decreases,but only if the tax is imposed on consumers.
• E) It increases,but only if the tax is imposed on consumers.

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Definitions:

Sensitivity Coefficients

Measurements that indicate how much the output of a mathematical model or system can change in response to changes in its inputs.

Macroeconomic Factor

A variable or element that impacts the broader economy, including aspects like inflation, unemployment, monetary and fiscal policies.

Mean-Variance Efficient Portfolio

An investment portfolio constructed to offer the highest expected return for a given level of risk, or the lowest risk for a given level of expected return, based on mean-variance optimization.

Expected Returns

The anticipated profit or loss from an investment, based on projections or historical data.