For Good A,the Supply Curve Is the Typical Upward-Sloping Straight

question 335

Multiple Choice

For good A,the supply curve is the typical upward-sloping straight line,and the demand curve is the typical downward-sloping straight line.When good A is taxed,the area on the relevant supply-and-demand graph that represents the deadweight loss is

• A) larger than the area that represents consumer surplus in the absence of the tax.
• B) larger than the area that represents government's tax revenue.
• C) a triangle.
• D) All of the above are correct.

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Definitions:

Attitudes

A psychological tendency expressed by evaluating a particular entity with some degree of favor or disfavor.

Expectancy-Value Theory

The theory that effort is based on the value or desirability of the goal, multiplied by the person’s assessment of how likely it is that she will be able to attain the goal.

Desirability

The quality of being wanted or wished for as appealing, attractive, or necessary.

Achievable

Refers to a goal or task that is possible to accomplish or attain with the available resources, skills, or conditions.