Sammy has a drone that he values at $1,500. Dean values the same drone at $2,000. Sammy decides to sell the drone to Dean for $1,800. If the government imposes a $250 tax on the sale of drones,
A) Sammy and Dean would not be able to complete the transaction.
B) Sammy and Dean would still be able to complete the transaction.
C) the tax would cause a deadweight loss of $500.
D) Both A and C are correct.
B
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Which of the following is not included in gross domestic private investment, as defined in national income accounts?
A. The value of all new capital goods bought by business firms B. Changes to business inventories C. Domestic home construction undertaken by and for the private sector D. Government construction of new highways and dams
________ is gross investment minus ________
A) The capital stock; net investment B) The capital stock; depreciation C) Depreciation; replacement investment D) Net investment; depreciation
The figure illustrates the market for posters. The tax on a poster is ________ and the government's tax revenue from the sale of posters is ________ a month
A) $0.50; $150 B) $0.35; $105 C) $0.35; $200 D) $0.35; $140
Milton Friedman published his famous book The General Theory of Employment, Interest, and Money in 1778
a. True b. False Indicate whether the statement is true or false