Answer the following statement(s) true (T) or false (F)
1. Small, medium, and large taxes all affect deadweight loss equally.
2. A large increase in tax can reduce the quantity exchanged to the point where there is very little tax revenue raised.
3. Subsidies create welfare gains.
4. Price ceilings create deadweight losses.
5. Deficiency payment programs are designed to help poor teachers.
1. False
2. True
3. False
4. True
5. False
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The cost of producing an additional unit of a good or service that falls on people other than the producer is
A) the marginal cost. B) represented by the demand curve. C) represented by the supply curve. D) the marginal external cost. E) the marginal social cost.
Refer to the table above. What is the total revenue when the monopolist charges a price of $3?
A) $1,050 B) $1,350 C) $1,750 D) $2,750