Table 12-2 -Refer to Table 12-2. Suppose That the Government Imposes a Government

question 511

Multiple Choice

Table 12-2
-Refer to Table 12-2. Suppose that the government imposes a $2 tax on delights, causing the price to increase from $4.00 to $6.00. Total consumer surplus

• A)falls by less than the tax revenue generated.
• B)falls by more than the tax revenue generated.
• C)falls by the same amount as the tax revenue generated.
• D)will not fall since Jennifer will no longer be in the market.

---

Definitions:

Expert

An individual with a high level of knowledge or skill in a particular area, typically acquired through education, training, or extensive experience.

Constructive Fraud

A type of fraud established by an abuse of a trust relationship where there was no intent to deceive, but the actions or negligence led to a breach of duty which resulted in harm.

Material Fact

A material fact is a fact that, if known, would influence an individual's decision in a transaction or in a legal case, thereby having a significant impact on the outcome.

Recklessly

Acting with disregard for the safety or consequences of one's actions, often leading to potential harm or risk.