- 6 Two Goods X And Y Have A Cross Elasticity Of Demand Of 1 8 Good Y Has An Income Elasticity Of Demand Of 0 6 An 1 (67.56 KiB) Viewed 30 times
A community relies on a private company to supply electricity using a coal-fired power station. The power station causes air pollution which imposes an external cost shown in the diagram. costs, revenue W A. WX Zi MSC B. WY MPC MPB = MSB The government decides to impose a tax on the electricity company to correct market failure. What represents the tax? electricity output C. XY D. YZ
8. What defines average variable cost? A. total cost divided by the quantity of the variable factor employed B. total variable cost divided by the quantity of the variable factor employed C. total variable cost divided by the output produced D. the addition to total variable cost by producing one more unit of output 9. The table shows the average incomes of the richest 20% of households and the poorest 20% of households in the UK (2015-2016), and the effects of government taxation and benefits on average income. before taxes and benefits after direct taxes and cash benefits after all taxes (direct and indirect) and all benefits average income (£) of richest 20% 85000 68 000 63 000 What can be concluded from the information in the table? average income (£) of poorest 20% 7 000 13 000 17 000 A. The effects of direct taxation have affected the rich less than the poor. B. The government's policy achieved income equality across households. C. The government redistributed all income taken from the rich to the poor. D. The government's policy reduced the income inequality between the poor and the rich.
10. The diagram shows the supply of limestone from quarry X and quarry Y at two prices. price of limestone A B P₁ D Sx What is the measure of the responsiveness of supply as the price increases from P1 to P2? ܘ Sx <1 1 >1 1 Q₂ quantity supplied Sy >1 1 Sy 스 0