Figure 8-3 the Vertical Distance Between Points a and C Represents a Represents

question 176

Multiple Choice

Figure 8-3
The vertical distance between points A and C represents a tax in the market.
-Refer to Figure 8-3.Which of the following equations is valid for the tax revenue that the tax provides to the government?

• A)Tax revenue = (P2 - P1)xQ1
• B)Tax revenue = (P3 - P1)xQ1
• C)Tax revenue = (P3 - P2)xQ1
• D)Tax revenue = (P3 - P1)x(Q2 - Q1)

---

Definitions:

National Labor Relations Board

A federal agency established in the United States to enforce labor laws in relation to collective bargaining and unfair labor practices.

Unfair Labor Practices

Actions by employers or unions that violate the rights of employees as defined by labor laws or labor agreements.

Compulsory Arbitration

A form of arbitration where parties are forced to resolve disputes through an arbitrator or arbitration panel rather than the courts.

Inflationary Increases

The rise in the price level of goods and services over a period, eroding purchasing power and value of money.