Question

number 23

QUESTION 22 If a good has a tax levied on it, sellers respond to the price that excludes the tax and not because demanders pay none of the tax. the quantity supplied of the good increases. the tax is handed over to the state directly by buyers. Sellers do not get to keep the tax revenue. the demand for the good has decreased. QUESTION 23 When a rent ceiling below the equilibrium rent is put in place, the outcome is inefficient because marginal benefit is greater than marginal cost. inefficient because marginal benefit is less than marginal cost. efficient because marginal benefit is greater than marginal cost. inefficient because marginal benefit equals marginal cost. efficient because marginal benefit equals marginal cost. QUESTION 24 What is the dumping argument for protection from international trade? Any firm necessary in wartime must be protected. Foreigners selling products in the economy limit the nation's diversity and stability Foreign producers selling below cost to drive domestic firms bankrupt must be stopped. Domestic jobs must be protected from competition from low paid foreign workers. Domestic firms must be protected until they gain a comparative advantage

Answer 1

0.29 • Option " is the correct option S PA PF A Rent citing N o QAQ In the figure, p*, Q* is the equilibrium Price a quantity Ren't ceiling isi put at a price! that is below' p*. The Quantity reduces from Q* I to a thus leading to inefficient outcome. And the Marginal Benest received ish the area of p"ZQIN whereas Marginal cost is just the area of pl moln This p" zagN eMan So margina Benefits Margondt At And Quanting a < &* this inefficienu