Suppose Hillary Values a Large Order of French Fries at $4

question 556

Multiple Choice

Suppose Hillary values a large order of French fries at $4. Bill values a large order of French fries at $7. The pre-tax price of a large order of French fries is $2. The government imposes a "fat tax" of $3 on each large order of French fries, and the price rises to $5. The deadweight loss from the tax is

• A)$4, and the deadweight loss comes from both Hillary and Bill.
• B)$4, and the deadweight loss comes only from Hillary because she does not buy a large French fries after the tax.
• C)$2, and the deadweight loss comes from both Hillary and Bill.
• D)$2, and the deadweight loss comes only from Hillary because she does not buy a large French fries after the tax.

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Definitions:

Quality of Work

The degree to which work performed meets or exceeds established standards in terms of accuracy, thoroughness, and performance efficiency.

Payroll Office

The department within an organization that is responsible for processing employee paychecks, withholding taxes, and maintaining financial records related to employment.

Human Resources

The department within an organization responsible for managing employee-related processes, including recruitment, training, and payroll.

Accounting and Finance

The area concerned with the management of funds and monetary transactions within an organization.