Suppose Motorland's government imposes a tax of $1.50 per gallon of gasoline sold. With the tax, the market will
A) underproduce by 0.2 million gallons of gasoline a month.
B) underproduce by 0.1 million gallons of gasoline a month.
C) overproduce by 0.1 million gallons of gasoline a month.
D) produce the efficient quantity of gasoline.
D
You might also like to view...
The paper currency that is currently being used in the U.S. is an example of ________ money
A) fiat B) price-indexed C) commodity D) hard
Specialization is a major obstacle to international trade
a. True b. False Indicate whether the statement is true or false
Under what market structure do we have only one firm?
A. Monopoly B. Perfect Competition C. Monopolistic Competition D. Oligopoly
Implicit costs are:
A. Equal to total fixed costs B. Comprised entirely of variable costs C. "payments" for self-employed resources D. Always greater in the short run than in the long run