Suppose Motorland's government imposes a tax of $1.50 per gallon of gasoline sold. With the tax, when the market is in equilibrium, the deadweight loss is

A) zero.
B) $37,500 per month.
C) $150,000 per month.
D) $75,000 per month.


A

Economics

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Alpha can produce either 18 tons of oranges or 9 tons of apples in a year, while Omega can produce either 16 tons of oranges or 4 tons of apples. Which of the following exchange rates between apples and oranges would allow both Alpha and Omega to gain by specialization and exchange?

a. 1 ton of apples for 3 tons of oranges b. 3 tons of apples for 3 tons of oranges c. 2 tons of apples for 3 tons of oranges d. 1 ton of oranges for 0.2 tons of apples

Economics

Ed thinks he looks good in tweed. Last week he saw a light-brown tweed sports coat at Dessen's Fine Clothing Store and thought that the $200 price tag was about as much as he was willing to pay. Lucky for him, he noticed an ad in the local paper that night that had attached a $20-off coupon for any purchase at Dessen's over $100 . Using the coupon, he bought the coat. He ended up with the coat

and a a. producer surplus of $80 b. producer surplus of $20 c. consumer surplus of $120 d. consumer surplus of $80 e. consumer surplus of $20

Economics

Index funds

a. buy all the stocks in a given stock index. b. promise to beat the market by a certain percentage known as an index. c. provide a return that is adjusted for changes in the consumer price index. d. buy industries within a particular category of the North American Industry Classification System.

Economics

Inflation refers to an increase in the

A. price level. B. rate of inflation. C. total income. D. real GDP.

Economics