Figure 4-25
Refer to . The price that buyers pay after the tax is imposed is
a.
P1.
b.
P2.
c.
P3.
d.
impossible to determine from the figure.
c
You might also like to view...
Paul wins a $500 watch in a sweepstakes and decides to keep it, even though he says he would have preferred to win $500 cash. Knowing Paul's preferences, how can we explain his decision to keep it?
A. Paul has a cognitive bias, and it leads him to value the watch more because he owns it. B. Paul has a cognitive bias; he is ignoring a nonmonetary opportunity cost of already owning the watch. C. Paul's implicit cost of ownership makes him feel as though he should keep the watch. D. All of these are true.
According to public choice theory, a more democratic country:
A) can eliminate rational ignorance so that politicians can focus on policies that promote economic growth. B) have a higher living standard without policies to promote economic growth. C) will have more policies that promote economic growth because it has a larger share of population that is brought into power. D) will have more policies that promote economic growth because a small elite is more efficient in making policy decisions.
Which of the following is NOT correct regarding the status of U.S. labor unions?
A) Today fewer than one in eight workers is a union member. B) A key reason for the decline in union membership is the relative decline in manufacturing jobs as a share of total employment. C) Greater domestic and global competition has had a part in bringing about a decline in unions. D) Global trade has increased the number of union members in the United States.
When the total utility from consuming one good is maximized, marginal utility is
A. zero. B. minimized. C. positive. D. maximized.