Which one is CORRECT about the effects of tax on welfare as compared to without tax? A.Consumer surplus will rise B.Producer surplus will rise C.Tax revenue will rise D.Total surplus will rise E.All of the above The effect of tax on deadweight loss becomes smaller when: A.demand is inelastic B.demand is elastic C.supply is inelastic D.supply is elastic E.A and C F.B and D Which one is CORRECT about the marginal and average costs? A.Marginal cost crosses both average variable cost and average total cost at their minimum points. B.Average fixed cost increases continuously as the level of output increases. C.Whenever marginal cost is greater than average total cost, average total cost is rising. D.All of the above Which of the following is an example of implicit costs? A.payments made by the firm to others B.opportunity cost of resources owned by the firm C.input costs that require an outlay of money D.payments made to labour only

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Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter6: Demand And Elasticity

Section: Chapter Questions

Problem 3TY

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Which one is CORRECT about the effects of tax on welfare as compared to without tax?

	A.	Consumer surplus will rise
	B.	Producer surplus will rise
	C.	Tax revenue will rise
	D.	Total surplus will rise
	E.	All of the above

The effect of tax on deadweight loss becomes smaller when:

	A.	demand is inelastic
	B.	demand is elastic
	C.	supply is inelastic
	D.	supply is elastic
	E.	A and C
	F.	B and D

Which one is CORRECT about the marginal and average costs?

	A.	Marginal cost crosses both average variable cost and average total cost at their minimum points.
	B.	Average fixed cost increases continuously as the level of output increases.
	C.	Whenever marginal cost is greater than average total cost, average total cost is rising.
	D.	All of the above

Which of the following is an example of implicit costs?

	A.	payments made by the firm to others
	B.	opportunity cost of resources owned by the firm
	C.	input costs that require an outlay of money
	D.	payments made to labour only

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