When a Tax Is Imposed on a Good or a Service,the

question 206

Multiple Choice

When a tax is imposed on a good or a service,the marginal benefit of the last unit bought ________ the marginal cost of the last unit.

• A) is equal to
• B) is greater than
• C) is less than
• D) None of the above answers is correct because there is no consistent relationship between the marginal benefit of the last unit and its marginal cost.
• E) is not able to be compared to

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Definitions:

Chart of Accounts

An organized list of all accounts in an entity’s financial system, used for classifying transactions.

Numbering System

A structured method for assigning unique identifiers to items to facilitate organization, tracking, and retrieval.

Identification

The process of recognizing or establishing the identity of a person or thing.

Businesses

Businesses refer to organizations or entities engaged in commercial, industrial, or professional activities, aiming to generate profits.