A. The government levies a tax on the producers of a good. Show, using a diagram, the revenue the tax raises for the government, the consumer and producer surplus, and the excess burden of thetax.

B. A firm maximizes its profits where its marginal revenue equals its marginal cost. Explain thisstatement.

C. What are the factors that determine economic growth in anation?

D. Briefly explain the causes of inflation?

E. The 'Coase Theorem' seems to imply that government interventions to correct externality problems are unnecessary. Is this true? Give reasons for your answer.