Solved

A Disadvantage of Unit Excise Taxes Is They Create the Incentive

Question 7

Multiple Choice

A disadvantage of unit excise taxes is they create the incentive _____.


A) for producers to favor smaller products over larger products
B) for producers to favor expensive products over inexpensive products
C) for buyers to purchase more of the good then they otherwise would
D) for buyers to shift to substitute goods with ad valorem excise taxes

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents