Explanation: the Following Figure Shows the Result of the Tax

question 131

Multiple Choice

Explanation: The following figure shows the result of the tax imposition.

-Refer to the scenario above.After the imposition of the tax,the government collects ________ in tax revenue,and there is a deadweight loss of ________ in the market.Explain your answer with a graph.

• A) $500,000; $50,000
• B) $450,000; $50,000
• C) $450,000; $25,000
• D) $400,000; $0

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Definitions:

Absolute Advantage

The ability of a country or entity to produce a good more efficiently (using fewer resources) than another country or entity.

Specializing

The process of focusing on and becoming expert in a particular subject or skill.

Trading

The action of buying, selling, or exchanging goods and services between people or organizations.

Specialized

Having a focus or expertise in a specific area of activity, knowledge, or production, often leading to increased efficiency.