Learn the toughest concepts covered in your Macroeconomics class with step-by-step video tutorials and practice problems.

Introduction to Taxes

1

Effects of Taxes

9m

Play a video:

2

Problem

If a tax has caused the market-clearing quantity to fall to Q_{2}, what is consumer surplus?

A

The area of (A)

B

The area of (A), (B), and (C)

C

The area of (A), (B), (C), (D), and (E)

D

The area of (A), (B), (C), (D), (E), and (F)

E

The area of (C) and (E)

3

Problem

If a tax has caused the market-clearing quantity to fall to Q_{2}, what is total economic surplus?

A

The area of (A) and (F)

B

The area of (D), (E), and (F)

C

The area of (A), (B), (D), and (F)

D

The area of (A), (B), (C), (D), (E), and (F)

E

The area of (C) and (E)