Table 11-3 This Table Describes the Police Protection Demands for Three Equal

question 133

Multiple Choice

Table 11-3
This table describes the police protection demands for three equal sized groups of people in Safetyville. The second, third, and fourth columns show the number of person-hours of police protection per day that a group will demand for a given price (the first column) .

-Refer to Table 11-3. What is the value of the 99th unit of police protection in Safetyville?

• A) $0
• B) $6
• C) $12
• D) $18

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Definitions:

Tax Revenue

The income that is collected by the government through various forms of taxation.

Excess Burden

The expense incurred by society due to market inefficiency, happening when there's a mismatch between supply and demand.

Tax Revenue

The earnings achieved by governments by levying taxes.

Excess Burden

The cost to society created by market inefficiency, mainly used in the context of taxes that cause consumers and producers to alter their behavior in ways that reduce economic well-being.