Figure 122 Figure 12

question 36

Multiple Choice

Figure 12.2 Figure 12.2 shows a demand curve and two sets of supply curves, one set more elastic than the other.
-Refer to Figure 12.2.If the government imposes an excise tax of $1.00 on every unit sold,the government's revenue from the tax

• A) is larger if the supply curve is S₀.
• B) is larger if the supply curve is S₁.
• C) is identical under either supply curve.
• D) is not maximised.

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Definitions:

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, often used as an indicator of inflation.

Real Wages

The purchasing power of wages or salaries, adjusted for inflation, indicating the quantity of goods and services that can be purchased.

High School Diploma

A certification awarded upon the successful completion of a secondary education program, representing a basic level of learning.

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An individual who has completed a course of study at a college or university and received a degree certifying their level of education.