Micro Economics MCQ (GK Set-1) with Answers

Micro Economics MCQ (GK Set-1) with Answers

186) Refer to Exhibit 4. If a tax is placed on the product in this market, tax revenue paid by the sellers is the area

Answer is:

C

187) Refer to Exhibit 4. If there is no tax placed on the product in this market, total surplus is the area

Answer is:

A + B + C + D + E + F.

188) Refer to Exhibit 4. If a tax is placed on the product in this market, total surplus is the area

Answer is:

A + B + C + D

189) Refer to Exhibit 4. If a tax is placed on the product in this market, deadweight loss is the area

Answer is:

E + F

190) Refer to Exhibit 4. Which of the following is true with regard to the burden of the tax in Exhibit 4?

Answer is:

The sellers pay a larger portion of the tax because supply is more inelastic than demand

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