Use the figure below to answer the following question.
What is the amount of producer surplus after the government imposes the excise tax on the market?
A. $32
B. $7
C. $9
D. $40
Answer: A
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An improvement in a country's legal system that enhanced the ability of citizens to protect their property rights and enforce contracts would result in which of the following changes to the country's production possibilities curve?
a. a movement from a point on the curve to a point outside the curve b. a movement from one point to another point along the curve c. an outward shift of the curve d. a movement from a point on the curve to a point inside the curve
The fundamental source of monopoly power is
a. barriers to entry. b. profit. c. decreasing average total cost. d. a product without close substitutes.
"Price controls in competitive markets cause shortages" is an example of:
A. the art of economics. B. positive economics. C. normative economics. D. Keynesian economics.
If the price elasticity of demand for airline tickets is 1.4 for a leisure traveler and 0.7 for a business traveler, then a price-discriminating monopolist would charge
A) a higher price for the business traveler than the leisure traveler. B) the same price for both travelers. C) a lower price for the business traveler than the leisure traveler. D) a less profitable price for the business traveler than the leisure traveler.