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The Accompanying Diagram Shows the Effect of Levying an Income

Question 63

Multiple Choice

The accompanying diagram shows the effect of levying an income tax on the consumer.The pre-tax optimum is at point A,and the post-tax optimum is at point B. The accompanying diagram shows the effect of levying an income tax on the consumer.The pre-tax optimum is at point A,and the post-tax optimum is at point B.   To measure the amount of tax money collected by the government,one uses the vertical distance between points A)  A and B. B)  A and D. C)  B and C. D)  B and D. To measure the amount of tax money collected by the government,one uses the vertical distance between points


A) A and B.
B) A and D.
C) B and C.
D) B and D.

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