Refer to the below graph. Assume the market for this product is initially in equilibrium at the intersection of D2 and S1. The shift in supply from S1 to S2 is due to an excise tax imposed on the product. The excise tax revenue collected by the government will be:
A. $60
B. $36
C. $32
D. $24
D. $24
You might also like to view...
In most economies, resources are allocated by
A) a central planning board. B) a dictator. C) the combined and decentralized actions of millions of people. D) the majority's will.
The fact that you may not know who your congressional representative is represents
A) rational ignorance on your part. B) the rival nature of information. C) inefficient oversupply of public servants. D) the use of the median voter theorem.
A booming economy can make investors:
A. eager to borrow money, and shift the demand curve for loanable funds to the right. B. eager to borrow money, and shift the supply curve for loanable funds to the right. C. wary of future downturns, and shift the demand curve for loanable funds to the left. D. wary of future downturns, and shift the supply curve for loanable funds to the left.
According to the textbook, the evidence indicates that NAFTA has:
A. reduced the employment of unskilled workers in the United States significantly. B. reduced the wages of skilled workers in the United States. C. stopped illegal immigration from Mexico. D. not significantly reduced the employment of unskilled workers in the United States.