The above figure shows the market for anti-freeze. The government imposes the sales tax shown in the figure on sellers. How much tax revenue does the government raise from this tax?
A) $2,000
B) $3,000
C) $4,000
D) $6,000
B
You might also like to view...
For a fixed percent reduction in pollution emissions to be economically efficient, it would have to be the case that:
A. all firms be the same size. B. enforcement is vigorous. C. the marginal cost of pollution control is the same across all firms. D. large polluters reduce emissions by more than small polluters.
Many cellular phone rate plans are structured as a combination of ________ price discrimination
A) first-degree and second-degree B) first-degree and third-degree C) second-degree and third-degree D) peak-load pricing and third-degree
Markets allocate resources efficiently when Adam Smith's "invisible hand" is allowed to work freely. Which of the following statements is true?
a. Unrestrained, competitive markets can accomplish optimal resource allocation through the invisible hand - the competitive price system. b. Mandatory controls that lower prices below equilibrium improve economic welfare by making the product cheaper and promote the efficient use of resources. c. The "visible hand" of government planners provides transparency to markets and thus improves outcomes. d. Increased competition from medical travel, domestic or international, does harm to patients who do not have the ability to travel for care. e. Government regulation is essential for market outcomes to maximize consumer welfare.
Which of the following statement is FALSE?
a) disposable income - saving = consumption expenditure b) consumption expenditure + saving = disposable income c) saving = disposable income - consumption expenditure d) consumption expenditure = saving - disposable income