Use the Figure Below to Answer the Following Questions

question 59

Multiple Choice

Use the figure below to answer the following questions.

Figure 16.3.2
-In Figure 16.3.2. The figure shows the market for good B. Which of the following government policies creates an efficient outcome?

• A)Tax the production of B by $3 per unit.
• B)Tax the production of B by $4 per unit.
• C)Provide vouchers for consumption of B of $1 per unit.
• D)Provide vouchers for consumption of B of $3 per unit.
• E)Provide vouchers for consumption of B of $4 per unit.

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Definitions:

Annual Annuity

A series of equal payments made at regular intervals over a period of one year.