When a Tax Is Placed on the Sellers of a Product,the

question 123

Multiple Choice

When a tax is placed on the sellers of a product,the

• A)size of the market decreases.
• B)effective price received by sellers decreases,and the price paid by buyers increases.
• C)supply of the product decreases.
• D)All of the above are correct.

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Definitions:

Employee's Earnings Record

A detailed record maintained by employers showing each employee's total earnings, deductions, and net pay over a specific period.

Payroll Period

The time frame for which employee earnings are calculated and paid, such as weekly, bi-weekly, monthly.

Unemployment Tax Rate

A tax rate assigned to an employer, based on the number of unemployment claims filed by former employees, which funds unemployment compensation programs.

Federal Income Tax

A tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.