Refer to the Information Provided in Table 19 -Refer to Table 19

question 25

Multiple Choice

Refer to the information provided in Table 19.5 below to answer the questions that follow.
Capital and labor each cost $1 per unit. The firm produces 1,000 units of output.
Table 19.5
$$\begin{array} { | c | c c | } & \begin{array} { c } \text { Input } \\\text { Requirements } \\\text { per unit of } \\\text { Output }\end{array} \\\text { Technology } & K& L \\\hline \text { A } & 5 & 2 \\\hline \text { B } & 3 & 5 \\\hline\end{array}$$
-Refer to Table 19.5. Suppose the government imposes a 100% tax on capital. What is the excess burden of the tax? Assume that the industry is perfectly competitive and thus price is equal to the marginal cost of production.

• A) $1,000
• B) $3,000
• C) $4,000
• D) $11,000

---

Definitions:

Semantic Processing

The processing of the meaning of words, phrases, and sentences, contributing to the understanding of language.

Shallow Processing

Cognitive processing of stimuli at a basic level based on their superficial attributes rather than their deeper meaning.

Implicit Memory

Memory that facilitates the performance of tasks through the influence of prior experiences, all the while the individual remains unaware of these influences.

Episodic Memory

A type of long-term memory that involves the recollection of specific events, situations, and experiences.