Use the figure below to answer the following question.
What is the amount of total surplus (for society) after the government imposes the excise tax on the market?
A. $32
B. $96
C. $100
D. $64
Answer: B
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An increase in the money supply would cause the FE line to
A) shift to the right. B) shift to the left. C) remain unchanged. D) remain unchanged if Ricardian equivalence holds; otherwise, shift to the right.
Assume the capital-labor ratio remains constant. If investment increases at a constant rate, real GDP per worker will increase ________, and if total factor productivity increases at a constant rate, real GDP per worker will increase ________
A) at an increasing rate; at an increasing rate B) at a constant rate; at an increasing rate C) at a constant rate; at a decreasing rate D) at a decreasing rate; at a constant rate
One of the consequences of inflation between 1950 and the 1970s was ________
A) a large increase in the federal deficit as a percentage of GDP B) a relaxation of the government budget constraint C) an increase in the dependency ratio D) a reduction in the ratio of debt to GDP
A major computer software company maintains a technical support center in a rural area and is the only employer in this region
Suppose the firm develops a new software system for managing technical support calls, and the marginal product of labor increases. What happens to the equilibrium outcome in this labor market? A) Labor demand shifts rightward, equilibrium wage and employment levels decline B) Labor demand shifts rightward, equilibrium wage and employment levels increase C) Labor demand curve remains the same, equilibrium wage and employment levels increase D) Labor demand curve remains the same, equilibrium wage and employment do not change E) none of the above