Author Question: The Volumetric Ethanol Excise Tax Credit (VEETC) is a tax credit (which acts like a subsidy) for ... (Read 26 times)

tiffannnnyyyyyy · **on:** Jun 29, 2018

The Volumetric Ethanol Excise Tax Credit (VEETC) is a tax credit (which acts like a subsidy) for registered ethanol-gasoline blenders. Qualified blenders receive 0.51 for each gallon of pure ethanol they blend into gasoline.

What statement is TRUE? A) With a subsidy, the price paid by consumers will be lower than without a subsidy.
B) Without a subsidy, the quantity produced by blenders will be greater than the quantity demanded.
C) With a subsidy, the equilibrium quantity produced will be lower than without a subsidy.
D) With a subsidy, production will be efficient.

Question 2

Even though the market for bricks has a low concentration ratio nationally, the U.S. Justice Department might still scrutinize any mergers in this industry because the

A) HHI is high nationally.
B) HHI is above 1800 nationally.
C) HHI is below 1800 nationally.
D) market is regional not national, and the regional concentration might be high.