Use the figure below to answer the following question(s).
Figure 4-8

Refer to Figure 4-8. How much revenue does the $40-per-ton tax generate for the government?
A) $600 million
B) $700 million
C) $2.4 billion
D) $2.8 billion

Question

Use the figure below to answer the following question(s).
Figure 4-8

Refer to Figure 4-8. How much revenue does the $40-per-ton tax generate for the government?
A) $600 million 
B) $700 million 
C) $2.4 billion 
D) $2.8 billion

Quizplus · Accepted Answer

The tax generates revenue for each ton of CO2 emitted, so we need to find the area of the rectangle with a width of 60 (million tons) and a height of 40 (dollars per ton). The area is 60 million tons x $40/ton = $2.4 billion. Therefore, the correct answer is C.

Use the Figure Below to Answer the Following Question(s)