When taxes are levied on transactions, irrespective of the party they are levied on,
a. The government can absorb all the consumer surplus from the transactions as revenue
b. The government can absorb all the producer surplus from the transactions as revenue
c. The government can absorb some of the surplus, but also creates a social loss since some of the wealth creating transactions are discouraged
d. The government can absorb all of the surplus (producer and consumer)
c
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Use the following table to answer the question below. Dave's Production Possibilities SchedulePounds of Green BeansPounds of Corn0160201204080604080 0Dave's opportunity cost of producing 1 pound of corn is ________ pound(s) of green beans.
A. 1 B. 4 C. 1/2 D. 2
Archibald's Tattoos is a perfectly competitive firm. The firm's costs are shown in the table above. If the market price of a tattoo is $17.50, what is the firm's economic profit?
A) zero B) $2.50 per hour C) $12.50 per hour D) -$10.00 per hour
What produced the European Payments Union?
(a) The Schumann Plan (b) The Monet Plan (c) The Spaak Plan (d) The Marshall Plan
According to purchasing-power parity, if it took 58 Indian rupees to buy a dollar today, but it took 55 to buy it a year ago, then the dollar has
a. appreciated, indicating inflation was higher in the U.S. than in India. b. appreciated, indicating inflation was lower in the U.S. than in India. c. depreciated, indicating inflation was higher in the U.S. than in India. d. depreciated, indicating inflation was lower in the U.S. than in India.