Use the figure below to answer the following question.
What area represents producer surplus after the government imposes the excise tax on the market?
A. triangle $21a$13
B. square $13ac$9
C. triangle abc
D. triangle $1c$9
Answer: D
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Items bought by individuals to provide personal enjoyment are termed
A) consumption goods. B) personal goods. C) consumption or investment goods. D) standard goods. E) pleasure goods.
Diminishing marginal returns to labor occur because
A) after a while it is hard to find a good worker. B) the capital resources used by the firm are fixed in the short run. C) workers become more efficient over time. D) larger companies are less efficient.
Federal tax loopholes in personal income tax provide benefits only to very high-income people.
Answer the following statement true (T) or false (F)
Figure 4-17
Refer to . Which of the following price controls would cause a shortage of 10 units of the good?
a.
a price ceiling of $5.50
b.
a price floor of $5.50
c.
a price ceiling of $6.50
d.
a price floor of $6.50