The graphs below illustrate the market for a product on which an excise tax has been imposed by government. Refer to the below graph. How much of the excise tax per unit is shouldered by the buyers?
A. $3
B. $5
C. $6
D. $8
A. $3
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All of the following are considered to be unemployed EXCEPT
A) job leavers. B) discouraged workers. C) job reentrants. D) new job entrants.
The idea behind reciprocity between two trading countries is that they
a. share the gains from trade equally b. eliminate quotas against each other c. eliminate tariffs against each other d. use the same set of trading practices with respect to each other e. agree to retaliate against other trading countries
A municipal bond is
a. issued by the federal government. b. issued by state and local governments. c. issued by corporations. d. issued by households.
A positive externality exists and government wants to apply a per-unit subsidy in order to bring about an efficient outcome. Under what condition will the solution (the subsidy) be worse than the problem (the market failure)?
A) Under the condition that the subsidy is greater than the marginal external benefit (associated with the positive externality). B) Under the condition that the post-subsidy output is not farther away from the efficient level of output than the pre-subsidy output is from the efficient level of output. C) Under the condition that the post-subsidy output is farther away from the efficient level of output than the pre-subsidy output is from the efficient level of output. D) Under the condition that the subsidy is less than the marginal external benefit (associated with the positive externality). E) none of the above