Figure 15.2 Figure 15.2 Shows a Demand Curve and Two Sets of Curve

question 92

Multiple Choice

Figure 15.2

Figure 15.2 shows a demand curve and two sets of supply curves, one set more elastic than the other.
-Refer to Figure 15.2.If the government imposes an excise tax of $1.00 on every unit sold, what is the size of the deadweight loss, if there is any?

• A)the area adc if the supply curve is S₀ and the area bec if the supply curve is S₁.
• B)the area afcd if the supply curve is S₀ and the area bfce if the supply curve is S₁.
• C)the area becf under either supply curve.
• D)There is no deadweight loss; revenue raised is used to fund government projects.

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Definitions:

Executive Council

A body composed of the executive members of a government or organization, responsible for making decisions and overseeing the administration of policies and strategies.

Inherent Powers

Powers that are not explicitly stated but are assumed to exist due to being necessary for a government to perform its duties and functions.

Implied Powers

Powers not explicitly stated in the U.S. Constitution but inferred from the enumerated powers that allow the government to perform its duties.

National Sovereignty

The authority of a state to govern itself or another state, emphasizing independence and autonomous rule.