« previous next »

Author Question: The figure above shows a tax imposed on a good with an external cost. The area of the rectangle abcd ... (Read 93 times)

bio_gurl

  • Hero Member
  • *****
  • Posts: 524
on: Jun 29, 2018
The figure above shows a tax imposed on a good with an external cost. The area of the rectangle abcd equals
 
  A) the MSB.
  B) the total tax revenue collected by the government.
  C) the amount of pollution tax per ton.
  D) the MC.
  E) the deadweight loss.

Question 2

An optimizing consumer has to choose between two goodsGood A priced at PA and Good B priced at PB.
 
  Given that MBA is the marginal benefit from consuming Good A and MBB is the marginal benefit from consuming Good B, the consumer's well-being will be maximized at the point where: A) MBA = MBB.
  B) MBA/PB=MBB/PA.
  C) MBA/PA = MBB/PB.
  D) MBA = MBB/PB.
Foundations of Microeconomics ¦ Bade, Parkin ¦ 8th Edition
Buy Test-Bank


mochi09

  • Sr. Member
  • ****
  • Posts: 335
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

Did you know?

There are more sensory neurons in the tongue than in any other part of the body.

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

The Ventral Tegmental Area and the Nucleus Accumbens The Ventral Tegmental Area and the Nucleus Accumbens
The photo shows an ultrasound image of a fetus of about 20 weeks’ gestational age. The photo shows an ultrasound image of a fetus of about 20 weeks’ gestational age.
Use an Automated External Defibrillator Use an Automated External Defibrillator
Adult neurogenesis. The top panel shows new cells in the dentate gyrus of the hippocampus—the cell ... Adult neurogenesis. The top panel shows new cells in the dentate gyrus of the hippocampus—the cell ...
Area of the hypoxic in The Gulf of Mexico’s “Dead Zone” Area of the hypoxic in The Gulf of Mexico’s “Dead Zone”
Video: Major Elements in Biological Molecules: Lipids

For a complete list of videos, visit our video library