Use the Following for Questions 61-69

question 55

Multiple Choice

Use the following for questions 61-69.

-(Exhibit: Consumer Equilibrium 1) Assume that the price of good X is $2 per unit, the price of good Y is $1 per unit, and you have $10 of income to spend on both goods.To maximize utility, you would consume _______ units of X and _______ units of Y.

• A) 3; 4
• B) 4; 3
• C) 4; 6
• D) 5; 5

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Definitions:

Benefits-received Principle

The concept that individuals should pay taxes in proportion to the benefits they receive from government services.

Gasoline Tax

A levy imposed by governments on the sale of gasoline, used primarily to fund transportation initiatives.

Lump-sum Tax

A fixed tax amount not dependent on the taxpayer's income level or financial transactions.

Economic Efficiency

A state where every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.