If a Tax Is Levied on the Buyers of a Product,then

question 28

Multiple Choice

If a tax is levied on the buyers of a product,then the demand curve will

• A)not shift.
• B)shift down.
• C)shift up.
• D)become flatter.

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Definitions:

Comparative Advantage

Comparative Advantage is an economic theory suggesting that countries should produce and export goods for which they have a lower opportunity cost compared to other countries.

Opportunity Cost

The forgone value of what you give up when you make a choice.

Total Output

The aggregate quantity of goods and services produced within an economy over a specific period, reflecting the economy's overall productivity.

Comparative Advantage

The ability of an entity to produce a good or offer a service at a lower opportunity cost than another.