The total welfare associated with a market that includes a government sales tax equals
A) consumer surplus plus producer surplus.
B) consumer surplus plus producer surplus minus government tax revenue.
C) consumer surplus plus producer surplus plus government tax revenue.
D) the government tax revenue.
C
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What are the two techniques to optimization? How do the techniques differ?
What will be an ideal response?
If the slope of the aggregate expenditure curve is 0.75, the expenditure multiplier is equal to
A) 1.33. B) 4.00. C) 0.75. D) 0.25. E) 5.00.
In the late 1980s, Canada embarked on an ambitious policy of reducing inflation to zero. Inflation did come down, while the unemployment rate ________, which ________ the U.S. disinflation experience of the 1980s
A) rose, runs counter to B) rose, duplicates C) remained nearly constant, runs counter to D) remained nearly constant, duplicates
If each player in a game uses a strategy that results in a Nash equilibrium outcome, the players are most likely to say
A) "I don't like my choice, because I think I could have done better." B) "Given the strategies chosen by the other players in the game, I probably could have done better if I had more time." C) "Given the strategies chosen by the other players in the game, I made the best possible choice." D) "There was no real strategy on my part, I basically made an educated guess."