Refer to the information provided in Figure 5.7 below to answer the question(s) that follow.
Figure 5.7The above figure represents the market for pumpkins both before and after the imposition of an excise tax, which is represented by the shift of the supply curve.Refer to Figure 5.7. The total revenue the government will receive from the imposition of this tax is
A. $875.
B. $1,225.
C. $2,100.
D. $3,600.
Answer: C
You might also like to view...
Which one of the following is an example of the circular flow model and shows the interdependence of households and firms?
a. Households demand their resources from the firms in the factor markets and, in turn, supply in the product market the goods and services produced by firms. b. The firms go to the resource market to supply resources that households demand and, in turn, provide households with the goods and services produced for the product markets. c. Households supply their resources to the firms in the factor markets and, in turn, demand in the product market the goods and services produced by the firms. d. The firms in the factor markets pay to households in the form of wages, interest, rent and profit?for resources demanded. e. The circuit is completed when the payments flow from households, through the product markets, and to the firms for the goods and services they demand.
Consider two people, Sandy Roos, who earns $25,000 . and Gary Behrman, who earns $50,000 . If the flat-tax rate is 20 percent, then
a. the government collects a total of $20,000 b. Gary pays twice the tax amount Sandy pays c. Gary pays three times the tax amount Sandy pays d. Gary and Sandy pay exactly the same tax amount e. Gary pays $15,000 in taxes
Referring to Figure 1.4, the opportunity cost of producing the first unit of pizza is 
A. the same as the opportunity cost of producing the second unit of pizza. B. three units of soda. C. one unit of soda. D. six units of soda.
Patents encourage invention by
A) offering subsidies to inventors. B) offering tax breaks to inventors. C) allowing patent owners to make an economic profit. D) preventing inventors from working on the same project.