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    Principles of Macroeconomics Study Set 8
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    Exam 8: Application the Cost of Taxation: The Deadweight Loss of Taxation
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    Tom Walks Bethany's Dog Once a Day for $50 Per
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Tom Walks Bethany's Dog Once a Day for $50 Per

Question 126

Question 126

Multiple Choice

Tom walks Bethany's dog once a day for $50 per week.Bethany values this service at $60 per week,while the opportunity cost of Tom's time is $30 per week.The government places a tax of $35 per week on dog walkers.After the tax,what is the total surplus?


A) $50
B) $30
C) $25
D) $0

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