Tom Walks Bethany's Dog Once a Day for $50 Per

question 234

Multiple Choice

Tom walks Bethany's dog once a day for $50 per week.Bethany values this service at $60 per week,while the opportunity cost of Tom's time is $30 per week.The government places a tax of $35 per week on dog walkers.After the tax,what is the loss in total surplus?

• A)$50
• B)$30
• C)$25
• D)$0

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Definitions:

Pay

Compensation given by an employer to an employee for services rendered.

Checks

Financial instruments issued against a bank account, allowing the person named to withdraw a specific amount of money from the account.

Electronic Fund Transfer Act

A United States federal law designed to protect consumers engaging in electronic transfer of funds.

Disclosure

The action of revealing or providing access to previously unknown or concealed information.