Wilma Values a Decorative Garden Rock at $15, While Fred

question 122

Multiple Choice

Wilma values a decorative garden rock at $15, while Fred values it at $10. The price of a decorative garden rock is $9. If the government imposes a $2 tax per decorative garden rock and the price of the rock rises to $11, what part of the deadweight loss comes from Wilma, and what part comes from Fred?

• A)none comes from Wilma; $1 comes from Fred
• B)none comes from Wilma; $3 comes from Fred
• C)$2 comes from Wilma; $1 comes from Fred
• D)$4 comes from Wilma; $3 comes from Fred

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Definitions:

Socialization

The process by which individuals learn and internalize the values, behaviors, and social norms of their society through interaction with social institutions.

Norms

Socially accepted rules of behavior that dictate what is considered acceptable and unacceptable within a society or group.

Values

Fundamental beliefs or guiding principles that individuals or societies hold, shaping behavior and cultural norms.

Culture

The sum total of ways of living, including values, beliefs, standards, language, thinking patterns, customs, and artifacts that are passed from one generation to the next by learning and not by genetic inheritance.