In the absence of taxes, Carlos would prefer to purchase a large fishing boat with a 75 hp motor. The government has recently decided to place a tax on boats with 75 hp motors or higher. If Carlos decides to purchase a smaller boat with a 50 hp motor as a result of the tax, which of the following statements is correct?
a. Other people who choose to purchase large boats will incur the cost of the deadweight loss of the tax.
b. There are no deadweight losses as long as some people still choose to purchase large boats.
c. In order to determine the size of the deadweight loss, we must add the revenues from the tax to the loss in Carlos's consumer surplus.
d. Carlos is worse off, and his loss of welfare is part of the deadweight loss of the tax.
d
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A) last-in, first-out constraint. B) sequential service constraint. C) double-coincidence of wants constraint. D) everyone-shares-equally constraint.
The funds that polluters pay that gives them the right to discharge into the air or water a certain amount of pollution are
A) special subsidies. B) regulation fees. C) external costs. D) effluent fees.
The total tariff revenue to the government of an imported good is found by adding the tariff to the quantity of the good imported
a. True b. False Indicate whether the statement is true or false
In order to derive the market supply curve from individual supply curves, we add up the:
A. Various prices that individual sellers are charging for the product B. Various quantities that individual sellers want to sell at specific price levels C. Total number of sellers in the market at a given time D. Costs that all individual sellers incur in producing the product