Assume That for Good X the Supply Curve for a Good

question 12

Multiple Choice

Assume that for good X the supply curve for a good is a typical,upward-sloping straight line,and the demand curve is a typical downward-sloping straight line.If the good is taxed,and the tax is doubled,the

• A)base of the triangle that represents the deadweight loss quadruples.
• B)height of the triangle that represents the deadweight loss doubles.
• C)deadweight loss of the tax doubles.
• D)All of the above are correct.

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Definitions:

Productivity Gains

Improvements in output or efficiency, allowing more to be accomplished with the same or fewer resources.

Profit-Sharing Plan

A company program that offers employees a share in the profits of the business, typically as a form of incentive or bonus.

Merit Pay Plan

A compensation strategy where employees are paid based on their performance or achievements, often intended to motivate and reward excellence.

Gain-Sharing Plan

A compensation strategy where employees receive financial benefits from improvements in the company's performance, encouraging productivity and team effort.