Use the Following to Answer Question

question 268

Multiple Choice

Use the following to answer question:
-(Figure: The Market for Lattes) Use Figure: The Market for Lattes.If an excise tax of $1.50 is assessed on each latte,government revenue will be:

• A)$400.
• B)$600.
• C)$800.
• D)$1,200.

---

Definitions:

Recession Phase

is a period of temporary economic decline during which trade and industrial activities are reduced, typically identified by a fall in GDP in two successive quarters.

Recovery Phase

A stage in the economic cycle where activity begins to increase again after a period of recession or depression, marked by rises in employment, consumer spending, and production.

Business Cycle

The cyclic phenomenon of economic expansion and contraction experienced by an economy over time.

Trough

A Trough in economics is a phase in the business cycle where activity is at its lowest point, preceding a recovery and expansion phase.