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
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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
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
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.
Inflation refers to an increase in the
A. price level. B. rate of inflation. C. total income. D. real GDP.