Which of the following is an example of an ad valorem tax?
A) 5% of price
B) 5% of quantity sold
C) $0.50 per unit sold
D) Government regulation
A
You might also like to view...
Which of these statements about poverty in the United States is correct?
a. Ownership of capital is more equally distributed than income earned from labor. b. Poverty in the United States has increased dramatically in the last 20 years. c. Individuals who are less productive will earn lower incomes.
If a bank has excess reserves of $7,000 and demand deposit liabilities of $100,000, and if the reserve requirement is 15 percent, then the bank has actual reserves of
A) $17,000. B) $22,000. C) $27,000. D) $29,000.
Suppose a perfectly competitive firm faces the following short-run cost and revenue conditions: ATC = $700; AVC = $500; MC = $600; MR = $600. The firm should
A) increase output. B) decrease output. C) continue to produce its current output. D) shut down.
Jennifer buys a piece of costume jewelry for $33 for which she was willing to pay $42. The minimum acceptable price to the seller, Nathan, was $30. Jennifer experiences:
A. a consumer surplus of $12 and Nathan experiences a producer surplus of $3. B. a producer surplus of $9 and Nathan experiences a consumer surplus of $3. C. a consumer surplus of $9 and Nathan experiences a producer surplus of $3. D. a producer surplus of $9 and Nathan experiences a producer surplus of $12.