Exhibit 19-8 ​

question 113

Multiple Choice

Exhibit 19-8
​

-Refer to Exhibit 19-8. The market for good X is initially at point A. A tax is then placed on the production of good X. It follows that the tax is equal to

• A)$1 per unit.
• B)$2 per unit.
• C)$12 in total.
• D)$10 in total.
• E)none of the above

---

Definitions:

Private Market

A segment of the economy composed of companies and financial transactions that are not regulated by the government.

Marginal Social Benefit

An increase in the total benefit to society resulting from a one-unit increase in the production of a good or service.

Animal Control Officer

A professional responsible for enforcing laws related to animals, handling stray, dangerous, or unwanted animals, and promoting animal welfare and public safety.

Individual Benefit

The advantage or gain received by an individual from an economic transaction or activity.