If the inverse demand curve a monopoly faces is p = 100 - 2Q, MC is constant at 16, and the government imposes an $8 per unit specific tax on the monopoly, the deadweight loss solely due to the tax is
A) $88.
B) $152.
C) $361.
D) $441.
A
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Indicate whether the statement is true or false
The use of eminent domain to seize private property always results in an increase in cooperative surplus
Indicate whether the statement is true or false
You are hired by the Council of Economic Advisors (CEA) as an economic consultant. The chairperson of the CEA tells you that she believes the current unemployment rate is too high. The unemployment rate can be reduced if aggregate output increases. She wants to know what policy to pursue to increase aggregate output by $300 billion. The best estimate she has for the MPC is 0.8. Which of the following policies should you recommend?
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_____ taxation, either through exemptions, deductions, or credits, that are designed to further some goal of social policy
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