Figure 8-7 the Graph Below Represents a $10 Per Unit

question 201

Multiple Choice

Figure 8-7 The graph below represents a $10 per unit tax on a good. On the graph, Q represents quantity and P represents price.

-Refer to Figure 8-7.One effect of the tax is to

• A)reduce consumer surplus from $60 to $24.
• B)reduce producer surplus from $32 to $8.
• C)create a deadweight loss of $24.
• D)All of the above are correct.

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Definitions:

Basic Hole System

A hole basis system of fits in manufacturing where the hole is the component with the basic size, and the shafts are adjusted for different fits.

Basic Size

The theoretical exact size from which the limits of size are determined in dimensioning and tolerancing practices.

Tolerance

The allowable deviation from a standard measurement in the manufacturing process, determining how much a part can vary from a specified dimension.

Locational Transition Fits

A type of fit specifying a range wherein there may be either a slight interference or clearance between parts, used for parts requiring precise alignment.