Refer to Figure 18-2. If the government imposes an excise tax of $1.00 on every unit sold, what is the size of the deadweight loss, if there is any?
A) the area adc if the supply curve is S0 and the area bec if the supply curve is S1.
B) the area becf under either supply curve.
C) the area afcd if the supply curve is S0 and the area bfce if the supply curve is S1.
D) There is no deadweight loss; revenue raised is used to fund government projects.
A
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Marginal cost is equal to
A) the total cost of a firm's production. B) total cost minus fixed cost. C) a cost that is not related to the quantity produced. D) the change in total cost that results from a one-unit increase in output. E) the change in fixed cost that results from a one-unit increase in output.
Income lost by the unemployed is an example of the ________ cost of unemployment, while the additional spending to control crime is an example of the ________ cost of unemployment.
A. psychological; economic B. economic; psychological C. economic; social D. social; psychological