Figure 162 Figure 16

question 9

Multiple Choice

Figure 16.2 Figure 16.2 shows a demand curve and two sets of supply curves, one set more elastic than the other.
-Refer to Figure 16.2.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:

Swapping Words

The process of exchanging words within a text or sentence to change its structure or meaning, often used in linguistic studies or exercises.

Ambiguous Words

Words that have more than one meaning or can be interpreted in multiple ways, often leading to confusion or ambiguity in communication.

Directive

A directive can be a formal instruction or order given by someone in authority, or it can refer to guiding principles in psychology and therapy that influence behavior or thought.

Phonological

Pertaining to the system of sounds that a language uses, including patterns of sounds used to encode meaning.