Table 12-2 -Refer to Table 12-2. Suppose That the Government Imposes a Government

question 267

Multiple Choice

Table 12-2
-Refer to Table 12-2. Suppose that the government imposes a $2 tax on delights, causing the price to increase from $4.00 to $6.00. Total consumer surplus will fall from

• A)$6 to $3.
• B)$7 to $4.
• C)$6 to $2.
• D)$5 to $3.

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Definitions:

Dividend Yield

The annual dividend payment divided by the current market price of the stock, expressing the dividend as a percentage of the stock price.

Tax Deductible

Expenses that can be subtracted from gross income to reduce taxable income, ultimately decreasing the tax owed.

Dividends

Money distributed to shareholders by a corporation, usually from the company's profits.

Business Expense

Costs incurred in the ordinary course of business, including salaries, rent, and office supplies, among others.