A consumer values a car at $30,000 and a producer values the same car at $20,000 . The transaction will not take place if a tax is imposed
a. equal to the seller surplus
b. smaller than the total surplus
c. larger than the total surplus
d. smaller than the buyer surplus
c
Economics
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Given full-employment output = $2,800, equilibrium output = $2,500, and MPS = 0.25, which of the following changes would most likely bring the economy to a full-employment level of national output?
a. $300 decrease in taxes. b. $75 increase in government spending. c. $75 decrease in taxes. d. $300 increase in government spending. e. $75 decrease in government spending.
Economics
Unilateral transfers involve money being sent abroad without any direct good or service being received.
Select whether the statement is true or false. A. True B. False
Economics