QUESTION 11 Figure 6-23 price 20 18 16 14 12 10 8 6 4 2 S D after tax D 10 20 30 40 50 60 70 80 90 100 110 120 130 quantity Refer to Figure 6-23. The per-unit burden of the tax is Oa. $5 for buyers and $5 for sellers. b. $6 for buyers and $4 for sellers. c. $10 for buyers and $0 for sellers. d. $4 for buyers and $6 for sellers.

Say that the government is considering a ban on smoking in restaurants in Tobaccoville. There are 1 million people living there, and each would benefit by 200 from this smoking ban. However, there are two large tobacco companies in Tobaccoville and the ban would cost them $5 million each. What are the proposed policys total costs and benefits? Do you think it will pass?

How does a government agency raise revenue differently from a private company, and how does that affect the way government makes decisions compared to business decisions?

The federal 3mm decides to require that automobile manufacturers install new anti-pollution equipment that costs 2,000 per car. Under what conditions can carmakers pass almost all of this cost along to car buyers? Under what conditions can carmakers pass very little of this cost along to car buyers?

Is pork-barrel spending always a bad thing? Can you think of some examples of pork-barrel projects, perhaps from your own district, that have had positive results?