Refer to Exhibit 4. If a tax is placed on the product in this market total surplus is the area ?

Related Mcqs:

Deadweight loss is greatest when ?

A. supply is elastic, and demand is perfectly inelastic B. demand is elastic, and demand is perfectly inelastic C. both supply and demand are relatively inelastic D. both supply and demand are relatively elastic...

Which of the following is true with regard to a tax on labor income? Taxes on labor income tend to encourage ?

A. the unscrupulous to enter the underground economy B. the elderly to retire early. C. all the things described in these answers. D. second earners to stay home. E. workers to work fewer hours...

The graph that shows the relationship between the size of a tax and the tax revenue collected by the government is known as a ?

A. none of these answers B. Reagan curve C. Keynesian curve D. Laffer curve E. Henry George curve....

A tax on petrol is likely to ?

A. generate a deadweight loss that is unaffected by the time period over which it is measured B. cause a greater deadweight loss in the long run when compared to the short run C. None of these answers D. cause a greater deadweight loss in the short run when compared to the long run....

Since the supply of undeveloped land is relatively inelastic a tax on undeveloped land would generate ?

A. a small deadweight loss and the burden of the tax would fall on the renter B. a large deadweight loss and the burden of the tax would fall on the landlora C. a large deadweight loss and the burden of the tax would fall on the renter. D. a small deadweight loss and the … Since the supply of undeveloped land is relatively inelastic a tax on undeveloped land would generate ?Read More...