Suppose the government imposes a tax that reduces the quantity sold in the market after the tax to Q2. The price that sellers receive is
A. P0.
B. P2.
C. P5.
D. P8.
Answer: D. P8.
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Which of the following statements is false?
A) Richer countries tend to be found in North America, Western Europe, and Japan. B) Countries with large populations tend to be rich. C) Growth of per capita GNP tends to be quite stable about 1.5-3 percent per year in industrialized countries. D) Over the past several decades, growth of per capita GNP tends to be higher on average in industrialized countries than in low or middle-income countries.
Household production increases when there is a stronger desire to avoid taxation
a. True b. False
The decision that the European Union should have a common currency was made at:
a. Maastricht b. Rome c. Vienna d. London
A baker of bread has a long-term fixed-price contract to supply bread. Which of the following would NOT reduce her risk?
A. Hedging this risk in the wheat futures market B. Finding a wheat farmer who will take the short position in a wheat futures contract C. Taking the long position in wheat futures contract D. Finding a wheat farmer who will take the long position in a wheat futures contract