Figure 8-1 -Refer to Figure 8-1.Suppose the Government Imposes a Tax of a Tax

question 179

Multiple Choice

Figure 8-1
-Refer to Figure 8-1.Suppose the government imposes a tax of P' - P'''.The area measured by J+K+L+M represents

• A)total surplus after the tax.
• B)total surplus before the tax.
• C)deadweight loss from the tax.
• D)tax revenue.

---

Definitions:

Reality Principle

A psychoanalytic concept suggesting that ego makes decisions based on the reality of the world, taking into account societal norms and laws.

Gratification Delay

The ability to resist the temptation for an immediate reward and wait for a later reward.

Ego

In psychoanalytic theory, a part of the personality that mediates between external reality, the id, and superego, and is responsible for realistic and socially appropriate behavior.

Amoral

Lacking moral sense; unconcerned with the rightness or wrongness of something.