Use the following to answer questions 1-2:

Figure and Table: Market for Taxi Rides

1.|(Figure and Table: Market for Taxi Rides) The figure represents a competitive market for taxi rides. If the government now imposes an excise tax of $4 per ride (causing the supply curve to shift upward by that amount), then the government will collect tax revenues of ________, which might be used for worthwhile purposes. However, there will be an excess burden (or deadweight loss) to society of ________ caused by this tax.|
||
||
||
D)|$24 million; $8 million|

2.|(Figure and Table: Market for Taxi Rides) The figure represents a competitive market for taxi rides. If the government now imposes an excise tax of $3 per ride (causing the supply curve to shift upward by that amount), then the government will collect tax revenues of ________, which might be used for worthwhile purposes, but there will be an excess burden (or deadweight loss) to society of ________ caused by this tax.|
||
||
C)|$21 million; $4.5 million|
||

Use the following to answer questions 3-4:

3.|(Table: Market for Fried Twinkies) The government decides to tax fried Twinkies at a rate of $0.30 per Twinkie and collect that tax from the producers. Using the table, the consumers will pay ________ per Twinkie and buy ________ Twinkies after the tax.|
A)|$1.20; 8,000|
B)|$1.30; 7,000|
C)|$1.40; 6,000|
D)|$1.50; 5,000|

4.|(Table: Market for Fried Twinkies) The government decides to tax fried Twinkies at a rate of $0.30 per Twinkie and collect that tax from the producers. Using the table, the producers will receive ________ per Twinkie and sell ________ Twinkies after the tax.|
||
B)|$1.20; 5,000|
||
||

Use the following to answer question 5:

Figure: Marginal Product of Labor

5.|(Figure: Marginal Product of Labor) Using the marginal product of labor