« 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 131 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?

Medications that are definitely not safe to take when breastfeeding include radioactive drugs, antimetabolites, some cancer (chemotherapy) agents, bromocriptine, ergotamine, methotrexate, and cyclosporine.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

Examples of structures in which extensive surface area is important for function. Examples of structures in which extensive surface area is important for function.
A freshly applied autograft. Note that the donor skin has been perforated so that it can be stretche A freshly applied autograft. Note that the donor skin has been perforated so that it can be stretche
The internal and external anatomy of the kidney. The internal and external anatomy of the kidney.
Typical Startup Cost Categories Typical Startup Cost Categories
This table shows the growth of a crowd at a rally over a 3 h period. This table shows the growth of a crowd at a rally over a 3 h period.
Four 2.0-µC point are at the corners of a rectangle with sides of length 3.0 cm and 4.0 cm. ... Four 2.0-µC point are at the corners of a rectangle with sides of length 3.0 cm and 4.0 cm. ...
Video: Helper T cell receptors, activation, proliferation, differentiation & action

For a complete list of videos, visit our video library