Use the Following to Answer Question

question 42

Multiple Choice

Use the following to answer question:
-(Figure: A Market with a Tax) Use Figure: A Market with a Tax.Before the tax is imposed,consumer surplus is equal to the areas:

• A)A + B + C + D + E.
• B)A + B + C.
• C)A + B + C + D + E + F.
• D)D + E + F.

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Definitions:

Payroll Taxes

Taxes that are withheld from employees' wages by their employers and paid directly to the government, typically used to fund social security and healthcare programs.

Federal Income Tax

Federal income tax is a tax levied by the national government on individuals' and corporations' annual earnings, contributing to federal revenue.

Federal Budget Deficit

Occurs when a government spends more money than it receives from taxes and other revenues within a fiscal year.

Budget Deficits

Occurs when a government's expenditures surpass its revenues within a given fiscal period, necessitating borrowing or spending cuts.