Refer to Sales Tax. After the tax is imposed, social gain is equal to
The following questions refer to the accompanying diagram which shows the effects of a sales tax imposed on consumers. The initial price and quantity are P0 and Q0, respectively. After the tax is imposed, the equilibrium quantity is Q1, firms receive the price Ps, and consumers pay the price Pd.
a. area A + D + E + G + H + J.
b. area B + C + F + I - J.
c. area A + B + C + D + E + F + G + H + I.
d. area A + B + C + D + F + G + I.
d. area A + B + C + D + F + G + I.
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Compared with a firm in a perfectly competitive market, the demand curve faced by a monopolistically competitive firm is
A) more elastic. B) more inelastic. C) perfectly elastic. D) perfectly inelastic.
A Lorenz curve is a graph that shows:
A. The equity versus efficiency trade-off B. How many households are living in poverty C. The tradeoff between inflation and unemployment D. The distribution of household income
When the reserve requirement is decreased, the excess reserves of member banks are ________.
A. reduced, but the multiple by which the commercial banking system can lend is unaffected B. reduced and the multiple by which the commercial banking system can lend is increased C. increased and the multiple by which the commercial banking system can lend is reduced D. increased and the multiple by which the commercial banking system can lend is increased
If Delores wanted to make sure that she had $3,000 a year from now, how much would she need to save now if the interest rate is 7 percent?
A) $3000 B) $2804 C) $2790 D) $2666