If Demand Is Downward Sloping and There Is Tax on the Good,Consumer

question 33

Multiple Choice

If demand is downward sloping and there is tax on the good,Consumer surplus equals

• A) The area between the demand curve and the price,up to the equilibrium quantity.
• B) Total surplus minus producer surplus.
• C) Total surplus minus producer surplus and government tax revenue.
• D) Total surplus minus producer surplus,government tax revenue,and dead-weight loss.

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Definitions:

Regressive Income Tax

A tax system where the tax rate decreases as the taxable amount increases, placing a higher relative burden on lower-income earners.

Unemployment Insurance

A government-provided financial assistance program for individuals who have lost their job, offering temporary financial support.

Inflation Targets

Specific, publicly announced goals for the annual rate of inflation that central banks aim to achieve and maintain to guide monetary policy.

Economic Growth

An increase in the amount of goods and services produced per head of the population over a period of time.