The net loss to society from a tax on a product can be measured as:
a. the loss in consumer surplus
b. the loss in producer surplus.
c. the loss in both consumer and producer surplus.
d. the difference between the loss in consumer and producer surplus and the gain in tax revenue.
d
You might also like to view...
Which of the following will NOT shift the aggregate demand curve to the right?
A) a decline in the price level B) an increase in government expenditures C) an increase in investment D) an increase in the money supply
Total profit is always maximized when __________ equals ____________.
Fill in the blank(s) with the appropriate word(s).
Figure 17.1 depicts a firm's marginal revenue product curve. If the prevailing hourly wage increases:
A. the marginal revenue product curve shifts upward. B. the marginal revenue product curve shifts downward. C. the marginal revenue product curve does not shift, but there is a movement upward along the curve. D. the marginal revenue product curve does not shift, but there is a movement downward along the curve.
If the cyclically-adjusted budget shows a deficit zero and the actual budget shows a deficit of about $150 billion, it can be concluded that there is:
A. Built-in stability B. A cyclical deficit C. An expansionary fiscal policy D. A contractionary fiscal policy