If a Tax Is Placed on Tires,then

question 15

Multiple Choice

If a tax is placed on tires,then
i.the equilibrium quantity of tires will decrease.
ii.a deadweight loss will be created.
iii.the producer surplus will decrease.

• A) i only
• B) ii only
• C) i and iii
• D) i and ii
• E) i, ii, and iii

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.

Declaration Date

The Declaration Date is the date on which a company's board of directors announces its next dividend payment, specifying the dividend's size, ex-dividend date, and payment date.

Dividend

A portion of a company's earnings that is paid to shareholders, usually on a quarterly basis, as a reward for owning the stock.