The most important difference between unit excise taxes and ad valorem excise taxes is _____.
A) the unit tax will change in response to a change in the price of the taxed good,while the ad valorem tax will not
B) the unit tax will not change in response to a change in the price of the taxed good,while the ad valorem tax will
C) the unit tax increases in response to a change in the price of the taxed good,while the ad valorem tax will decline
D) the unit tax declines in response to a change in the price of the taxed good,while the ad valorem tax will increase
Correct Answer:
Verified
Q7: A disadvantage of unit excise taxes is
Q8: An ad valorem tax on demanders causes
Q9: _ prefer a quota to an import
Q10: Tariffs are frequently used in less-developed countries
Q11: When attempting to determine if a sales
Q13: Which of the following is not an
Q14: One advantage of ad valorem taxes over
Q15: A unit tax has an advantage over
Q16: A general sales tax comes close to
Q17: Producers may respond to a unit tax
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