Tom walks Bethany's dog once a day for $50 per week. Bethany values this service at $60 per week, while the opportunity cost of Tom's time is $30 per week. The government places a tax of $35 per week on dog walkers. After the tax, what is the total surplus?
a. $50
b. $30
c. $25
d. $0
d
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According to estimates by Richard Vedder, rates of exploitation for slaves:
a. are similar to those of antebellum manufacturing workers. b. indicate that slaves received nearly the full marginal value product of their labor. c. equaled 50-65 percent of their value marginal product. d. cannot be determined due to inadequate data on maintenance costs of adult slaves.
Hired housekeepers, nannies, and cooks, working in households as either employees or self-employed persons, earn incomes for productive services that are not counted in GDP
Indicate whether the statement is true or false
Which of the following marginal costs might be incurred if society chose to pursue a zero-tolerance policy regarding crime?
a. Education funds would be diverted to crime prevention. b. Individual privacy protections would be strengthened. c. People would have to begin growing their own food. d. Fewer scarce resources would be used for prisons.
If a cyclical surplus exists, the economy must be:
A. experiencing deflation. B. at potential income. C. above potential income. D. below potential income.