Use the figure below to answer the following question.
What is the amount of deadweight loss after the government imposes the excise tax on the market?
A. $4
B. $36
C. $32
D. $2
Answer: A
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To say that a price ceiling is nonbinding is to say that the price ceiling
a. results in a surplus. b. is set above the equilibrium price. c. causes quantity demanded to exceed quantity supplied. d. All of the above are correct.
Citizens expect the government to provide various goods and services making taxes
a. inefficient. b. equitable. c. inevitable. d. intolerable.
Liberalism aims to raise the welfare of the worst-off person in society. This rule is called the
a. minimax regret criterion. b. conservative approach. c. Nozick criterion. d. maximin criterion.
The figures below illustrate a situation of a trade embargo. In Figure (a) Dd and Sd are the domestic demand and supply curves of the embargoing countries. Prior to the embargo there was free trade at the world price of P0.
The embargoing country loses area ________ while the target country loses area.
A. (b + c); (a + c). B. a; b. C. (a + d); (b + c). D. a; (b + c).