Tom Walks Bethany's Dog Once a Day for $50 Per

question 43

Multiple Choice

Tom walks Bethany's dog once a day for $50 per week.Bethany values this service at $60 per week,while the opportunity cost of Tom's time is $30 per week.The government places a tax of $35 per week on dog walkers.Before the tax,what is the total surplus?

• A)$60
• B)$50
• C)$30
• D)$25

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Definitions:

Money Supply

The entirety of financial assets at a specific point in time within an economy, including the total of cash, coins, and balances in savings and checking accounts.

Interest Rate

The fee a lender imposes on a borrower for utilizing assets, denoted as a portion of the primary sum.

Aggregate Demand

represents the total demand for all goods and services in an economy at a given time and price level.

Short-Run Aggregate Supply

Represents the total output of goods and services produced in an economy at different price levels over a short period, during which some factors of production are fixed.