econ

CHINA UNIVERSITY SUMMER SCHOOL ASSOCIATION

Intermediate Microeconomics (Econ 021) – Quiz 3

NAME OF STUDENT………………………………………………………………………….....

1. The graph below describes how tax affects welfare in an economy. Using the knowledge

gained from this subject explain the graph and give the name of the area shaded C and E.

2. What are the determinants of deadweight loss? 3. What is Taxation? Explain the difference between direct and indirect tax?