Refer to the above figure. A unit tax has been placed on the good. The consumer pays what amount of the tax?
A) none of the tax
B) P2 - P0
C) P2 - P1
D) P1 - P0
C
You might also like to view...
Which of the following is an advantage of an in-kind transfer in comparison to a cash payment?
a. In-kind transfers cost less to administer than cash transfers. b. In-kind transfers restrict the use of the benefit; thus, recipients receive necessities such as food and health care. c. In-kind transfers are more efficient than cash transfers. d. In-kind transfers give the recipient more utility than cash transfers.
In the GDP accounts production equals
a. income. b. income + saving. c. income - government expenditures. d. income - imports.
List the four determinants of an economy's productivity
Which of the following is likely to shift the demand curve for corn farmers leftward, assuming all else equal?
A) A fall in the productivity of corn farmers due to increased pest attacks B) A rise in the productivity of farmers due to better fertilizers C) A fall in the wage rate of corn farmers D) A rise in the wage rate of corn farmers