If the Demand Curve for a Good Is Horizontal,a Tax

question 188

Multiple Choice

If the demand curve for a good is horizontal,a tax is levied on this product is

• A) split between the buyers and the sellers but not evenly so that either the buyer or the seller pays more.
• B) split evenly between the buyers and the sellers.
• C) paid entirely by buyers.
• D) paid entirely by sellers.
• E) not paid by either the buyers or the sellers.

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Definitions:

Unemployment

The condition of being jobless among individuals who are actively seeking work. It is a key indicator of economic health, measured by the unemployment rate.

Bureau of Labor Statistics

A unit of the United States Department of Labor that is responsible for collecting and analyzing important economic data, including employment and unemployment statistics.

Unemployed

Individuals who are capable of working and actively seeking employment but are unable to find a job.

Cyclical Unemployment

Unemployment that results from economic downturns or recessions, where there is insufficient demand for labor.