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    Question

    What is a Per unit Tax (or Unit

    Tax)?
    A A tax that the government imposes per unit purchase on imports. Correct Answer Incorrect Answer
    B A tax that the government imposes per unit sale of output. Correct Answer Incorrect Answer
    C A tax that the factory imposes per unit sale of output. Correct Answer Incorrect Answer
    D A tax that the factory imposes on total unit purchase on imports. Correct Answer Incorrect Answer

    Solution

    A per unit tax, or specific tax, is a tax that is defined as a fixed amount for each unit of a good or service sold, such as cents per kilogram.

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