Refer to the below graph. How much is the efficiency (or deadweight) loss due to the excise tax?
The graphs below illustrate the market for a product on which an excise tax has been imposed by government.
A. $6
B. $9
C. $18
D. $21
B. $9
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According to the Environmental Protection Agency, the total costs created by the Clean Air Act between 1970 and 1990 were about $500 billion. Their midrange estimate of the value of benefits from the Clean Air Act for the same time period was about:
a. half that amount. b. two-thirds of that amount. c. more than 40 times higher. d. almost 10 times higher.
A customs union will increase the welfare of its members and the rest of the world if:
a. trade creation is greater than trade diversion. b. trade creation is less than trade diversion. c. trade creation is positive. d. trade diversion is positive.
Which of the following is the formula for total economic profit?
a. (P* x ATC) ÷ q* b. (P* – ATC) × q* c. (P* – MC) × q* d. (P* x MC) ÷ q*
The nominal interest rate is:
A. the amount of interest the bank pays you for saving or charges you for borrowing. B. the reported interest rate, adjusted for the effects of inflation. C. the everyday notion of the interest rate adjusted for inflation. D. the amount of interest the bank charges you for saving or pays you for borrowing.