Assume That for Good X the Supply Curve for a Good

question 5

Multiple Choice

Assume that for good X the supply curve for a good is a typical,upward-sloping straight line,and the demand curve is a typical downward-sloping straight line.If the good is taxed,and the tax is tripled,the

• A)base of the triangle that represents the deadweight loss triples.
• B)height of the triangle that represents the deadweight loss triples.
• C)deadweight loss of the tax increases by a factor of nine.
• D)All of the above are correct.

Analyze the impact of income distribution and redistribution methods.

Evaluate the effectiveness of various types of welfare programs.

Understand the concept of utility and its application in economics.

Interpret and assess tax systems, including negative income tax.

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Definitions:

Benefits-Received Principle

A theory of taxation wherein individuals pay taxes in proportion to the benefits they receive from government services.

Camping Fee

A charge for the privilege of accessing and using facilities or spaces designated for camping.

National Parks

Protected areas established by governments for the conservation of nature, preservation of wildlife, and recreation, accessible to the public.

Economic Income

The total value of all income received by individuals or corporations, including both realized and unrealized gains.