Figure 8-17 the Vertical Distance Between Points a and B Represents the Represents

question 209

Multiple Choice

Figure 8-17
The vertical distance between points A and B represents the original tax.

-Refer to Figure 8-17.If the government changed the per-unit tax from $5.00 to $2.50,then the price paid by buyers would be $7.50,the price received by sellers would be $5,and the quantity sold in the market would be 1.5 units.Compared to the original tax rate,this lower tax rate would

• A) increase government revenue and increase the deadweight loss from the tax.
• B) increase government revenue and decrease the deadweight loss from the tax.
• C) decrease government revenue and increase the deadweight loss from the tax.
• D) decrease government revenue and decrease the deadweight loss from the tax.

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Definitions:

Physical Attractiveness

The degree to which a person's physical features are considered aesthetically pleasing or beautiful by others.

Similarity

The degree to which two or more things resemble each other in terms of attributes, characteristics, or qualities.

Fundamental Attribution Error

The tendency to overemphasize personality traits and underestimate situational factors when explaining others' behaviors.

Availability Heuristic

A cognitive rule of thumb that says that the perceived probability of an event or the importance assigned to it is based on its availability in memory.