Refer to the figure above. Calculate the total surplus after the government imposes a tariff of $1 per unit

During the Great Depression:

A) By 1933, 25 percent of the nation's workers had lost their jobs. B) output reached its lowest level in 1929. C) the production possibilities curve shifted sharply inward, which explains the drop in output, jobs, and overall prosperity. D) firms increased output but used fewer workers.

Homer earns $10,000 per year. Each year he spends $5,000 and saves $5,000. He pays a 5 percent sales tax on all of his spending. Assuming the sales tax is the only tax he pays, his average tax rate out of his income is

A) 0 percent. B) 2.5 percent. C) 3.5 percent. D) 5.0 percent.