About 35,000 General Aviation Multiengine Airplanes Are Licensed to Operate

question 131

Multiple Choice

About 35,000 general aviation multiengine airplanes are licensed to operate in the United States. If an additional $1,000-per-year tax was levied on each plane to raise general revenue, economic thinking suggests the

• A) annual revenue from this tax would be less than $35,000,000.
• B) annual revenue from this tax would be $35,000,000.
• C) annual revenue from this tax would be more than $35,000,000.
• D) number of airplanes would increase dramatically.

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