Quiz 7: Taxes
Business
Q 1Q 1
Suppose the government imposes a $10 excise tax on the sale of sweaters by charging suppliers $10 for each sweater sold.If the demand curve is downward-sloping and the supply curve is upward-sloping:
A)the price of sweaters will increase by $10.
B)consumers of sweaters will bear the entire burden of the tax.
C)the price of sweaters will increase by less than $10.
D)the price of sweaters will decrease by $10.
Free
Multiple Choice
C
Q 2Q 2
An excise tax that the government collects from the producers of a good:
A)shifts the supply curve upward.
B)reduces revenue for the government.
C)has an effect similar to that of a tax subsidy.
D)shifts the supply curve downward.
Free
Multiple Choice
A
Q 3Q 3
Recently,the government considered adding an excise tax on CDs that can be used to record music and CD players that can record discs.If this tax were enacted,the MOST likely effect would be:
A)that consumers would pay a higher price and producers would sell fewer of these CDs and CD players than before the tax.
B)no change in consumption or the prices paid by consumers of these CDs and CD players.
C)that consumers would pay a lower price and producers would receive a higher price for these CDs and CD players than before the tax.
D)an increase in economic activity due to the tax.
Free
Multiple Choice
A
Q 4Q 4
If an excise tax is imposed on automobiles and collected from consumers,the:
A)demand curve will shift downward by the amount of the tax.
B)supply curve will shift upward by the amount of the tax.
C)equilibrium quantity supplied will increase relative to the pretax level.
D)equilibrium quantity demanded will increase relative to the pretax level.
Free
Multiple Choice
Q 5Q 5
The incidence of a tax:
A)is a measure of the revenue the government receives from it.
B)refers to who writes the check to the government.
C)refers to how much of the tax is actually paid by consumers and producers.
D)is a measure of the deadweight loss from the tax.
Free
Multiple Choice
Q 6Q 6
Use the following to answer questions 6-9:
-(Table: The Market for Fried Twinkies)Use Table: The 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.According to the table,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
Free
Multiple Choice
Q 7Q 7
Use the following to answer questions 6-9:
-(Table: The Market for Fried Twinkies)Use Table: The Market for Fried Twinkies.Of the $0.30 tax per fried Twinkie,consumers actually pay _____,while producers actually pay _____.
A)$0.30;$0.00
B)$0.15;$0.15
C)$0.20;$0.10
D)$0.00;$0.30
Free
Multiple Choice
Q 8Q 8
Use the following to answer questions 6-9:
-(Table: The Market for Fried Twinkies)Use Table: The 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.After paying the tax,producers will receive _____ per Twinkie,and they will sell _____ Twinkies after the tax.
A)$1.10;3,000
B)$1.20;5,000
C)$1.30;7,000
D)$1.50;5,000
Free
Multiple Choice
Q 9Q 9
Use the following to answer questions 6-9:
-(Table: The Market for Fried Twinkies)Use Table: The Market for Fried Twinkies.As a result of the $0.30 tax per fried Twinkie,the government will receive total tax revenue of:
A)$500.
B)$1,000.
C)$1,500.
D)The total is impossible to calculate.
Free
Multiple Choice
Q 10Q 10
Use the following to answer questions 6-9:
-(Figure: An Excise Tax)Use Figure: An Excise Tax.If an excise tax equal to $1.10 is imposed on this good,then the price paid by consumers will:
A)rise by $1.10.
B)rise by $1.33.
C)not rise.
D)rise by $0.50.
Free
Multiple Choice
Q 11Q 11
The burden of a tax on a good is said to fall completely on the consumers if the:
A)price paid by consumers for the good declines by the amount of the tax.
B)price paid by consumers for the good increases by the amount of the tax.
C)price paid by consumers does not change.
D)wages received by workers who produce the good increase by the amount of the tax.
Free
Multiple Choice
Q 12Q 12
The burden of a tax on a good is said to fall completely on the producers if the:
A)price paid by consumers for the good declines by the amount of the tax.
B)price paid by consumers for the good increases by the amount of the tax.
C)price paid by consumers does not change.
D)wages received by workers who produce the good increase by the amount of the tax.
Free
Multiple Choice
Q 13Q 13
Use the following to answer questions 13-14:
-(Figure: The Market for Productivity Apps)Use Figure: The Market for Productivity Apps.If the government imposes a tax of $1 in this market,consumers will pay _____ more per app and purchase _____ fewer apps.
A)$1;5
B)$1;25
C)$0.50;5
D)$0.50;20
Free
Multiple Choice
Q 14Q 14
Use the following to answer questions 13-14:
-(Figure: The Market for Productivity Apps)Use Figure: The Market for Productivity Apps.If the government imposes a tax of $1 in this market,producers will receive _____ less per app and sell _____ fewer apps.
A)$1;5
B)$1;25
C)$0.50;5
D)$0.50;20
Free
Multiple Choice
Q 15Q 15
If an excise tax is imposed on wine and collected from the consumers,the _____ curve will shift _____ by the amount of the tax.
A)demand;upward
B)demand;downward
C)supply;upward
D)supply;downward
Free
Multiple Choice
Q 16Q 16
If an excise tax is imposed on beer and collected from the producers,the _____ curve will shift _____ by the amount of the tax.
A)demand;upward
B)demand;downward
C)supply;upward
D)supply;downward
Free
Multiple Choice
Q 17Q 17
Assuming a normal upward-sloping supply curve and downward-sloping demand curve,if the government imposes a $5 excise tax on leather shoes and collects the tax from the suppliers,the price of leather shoes will:
A)increase by $5.
B)increase by more than $5.
C)increase by less than $5.
D)increase,but we cannot determine by how much.
Free
Multiple Choice
Q 18Q 18
If the government imposes a $5 excise tax on leather shoes and the price of leather shoes increases by $2:
A)the government will receive less tax revenue than anticipated.
B)consumers are paying more of the tax than the producers.
C)producers are paying more of the tax than are the consumers.
D)the quantity of shoes sold will increase.
Free
Multiple Choice
Q 19Q 19
If the government imposes a $5 excise tax on leather shoes and the price of leather shoes does not change:
A)the government will receive less tax revenue than anticipated.
B)consumers are paying all of the tax.
C)producers are paying all of the tax.
D)consumers and producers are paying equal amounts of the tax.
Free
Multiple Choice
Q 20Q 20
State governments levy excise taxes on alcohol because:
A)they want to subsidize alcohol production.
B)they want to encourage individuals to produce their own alcohol.
C)it discourages drinking alcohol while raising revenue for the government.
D)it is politically popular with religious groups.
Free
Multiple Choice
Q 21Q 21
Tax incidence refers to:
A)who writes the check to the government.
B)who really pays the tax.
C)the deadweight loss from the tax.
D)the total revenue that the government collects from the tax.
Free
Multiple Choice
Q 22Q 22
An excise tax is levied on:
A)each unit of a good or service that is sold.
B)earnings.
C)the ownership of real estate.
D)the inheritance of assets.
Free
Multiple Choice
Q 23Q 23
Prior to any taxes,the equilibrium price of gasoline is $3 per gallon.Then a $1-per-gallon tax is levied.As a result,the price of gasoline rises to $3.75 per gallon.The incidence of the $1 tax is _____ paid by consumers and _____ paid by producers.
A)$0.25;$0.75
B)$0.50;$0.50
C)$0;$1.00
D)$0.75;$0.25
Free
Multiple Choice
Q 24Q 24
Which tax is an excise tax?
A)a tax of $0.41 per gallon of gas
B)a tax of 12.4% of your wages
C)a tax on the value of your property
D)a one-time local per capita tax of $50
Free
Multiple Choice
Q 25Q 25
An excise tax is levied on suppliers.The incidence of the tax:
A)is typically on the consumer more than the producer.
B)is typically on the producer more than the consumer.
C)is typically split equally between the producer and the consumer.
D)cannot be determined without more information.
Free
Multiple Choice
Q 26Q 26
(Figure: The Market for Hotel Rooms)Use Figure: The Market for Hotel Rooms.Suppose with no tax the equilibrium price is $110 and the equilibrium quantity is 250.If the local government levies a tax of $30 per night on each hotel room rented,the new equilibrium price will equal _____ and the new equilibrium quantity will equal _____.
A)$140;100
B)$130;150
C)$120;200
D)$110;250
Free
Multiple Choice
Q 27Q 27
Taxes on the purchase of specific items such as gasoline,cigarettes,or alcoholic beverages are called _____ taxes.
A)personal income
B)excise
C)property
D)sales
Free
Multiple Choice
Q 28Q 28
Determining who bears the burden of the tax is a question about:
A)tax incidence.
B)externality analysis.
C)public interest theory.
D)public choice theory.
Free
Multiple Choice
Q 29Q 29
Tax incidence analysis seeks to determine:
A)who sends the tax payment to the government.
B)who actually pays the tax.
C)who ultimately gets the tax revenue.
D)whether a tax is in the benefits-received category or the ability-to-pay category.
Free
Multiple Choice
Q 30Q 30
Determining who actually pays the cost imposed by a tax is the study of:
A)public interest theory.
B)rational choice theory.
C)tax incidence.
D)budget analysis.
Free
Multiple Choice
Q 31Q 31
The burden of a tax on a good falls at least partially on consumers if the:
A)price paid by consumers for the good declines.
B)price paid by consumers for the good increases.
C)wages received by workers who produce the good decline.
D)wages received by workers who produce the good increase.
Free
Multiple Choice
Q 32Q 32
Suppose the absolute value of the price elasticity of demand for yachts equals 4.04,while the price elasticity of supply for yachts equals 0.22.If Congress reinstates a luxury tax on yachts,who will pay more of the tax?
A)Yacht builders will pay more.
B)Yacht buyers will pay more.
C)Yacht builders and buyers will pay equally.
D)It's impossible to tell without additional information.
Free
Multiple Choice
Q 33Q 33
State governments levy excise taxes on cigarettes because:
A)they want to subsidize tobacco farming.
B)they want to discourage cigarette smuggling.
C)it is an easy way to raise tax revenue while discouraging smoking.
D)they want to minimize the tax burden on consumers.
Free
Multiple Choice
Q 34Q 34
Suppose the government levies a $4 per month excise tax on cable TV.If the demand for cable TV is relatively (but not perfectly)inelastic and the supply curve is relatively (but not perfectly)elastic,then the price of cable TV will:
A)increase by more than $4.
B)increase by exactly $4.
C)increase by less than $4.
D)remain constant.
Free
Multiple Choice
Q 35Q 35
Suppose the government imposes a $4 per month excise tax on cable TV.If the demand for cable TV is perfectly inelastic and the supply curve is elastic (but not perfectly elastic),then the price of cable TV will:
A)increase by more than $4.
B)increase by exactly $4.
C)increase by less than $4.
D)remain constant.
Free
Multiple Choice
Q 36Q 36
If the demand curve is downward-sloping and supply is perfectly elastic,then the burden of an excise tax is:
A)borne entirely by consumers.
B)borne entirely by producers.
C)shared by consumers and producers,with the burden falling mainly on consumers.
D)shared by consumers and producers,with the burden falling mainly on producers.
Free
Multiple Choice
Q 37Q 37
If demand is perfectly inelastic and the supply curve is upward-sloping,then the burden of an excise tax is:
A)borne entirely by consumers.
B)borne entirely by producers.
C)shared by consumers and producers,with the burden falling mainly on consumers.
D)shared by consumers and producers,with the burden falling mainly on producers.
Free
Multiple Choice
Q 38Q 38
As part of an anti-obesity program,the government levies an excise tax on high-fat foods.We expect consumers to pay almost all of this tax if demand is _____ and supply is _____.
A)inelastic;inelastic
B)inelastic;elastic
C)elastic;elastic
D)elastic;inelastic
Free
Multiple Choice
Q 39Q 39
Suppose the government imposes a $10 per month tax on cell phone service.If the demand curve for cell phone service is perfectly inelastic and the supply curve is upward-sloping,the monthly price for cell phone service will increase by:
A)$5.
B)less than $10.
C)$10.
D)$0.
Free
Multiple Choice
Q 40Q 40
Suppose the government imposes a $9 per month tax on cell phone service.If the demand curve for cell phone service is perfectly elastic and the supply curve is upward-sloping,the monthly price for cell phone service will:
A)increase by $4.50.
B)increase by more than $9.
C)increase by $9.
D)not change.
Free
Multiple Choice
Q 41Q 41
The price elasticity of demand for a particular cancer drug is zero and the price elasticity of supply is 0.50.If a $1 excise tax is levied on producers,how much of this tax will eventually be paid by consumers?
A)$0
B)$1
C)$0.50
D)$1.50
Free
Multiple Choice
Q 42Q 42
The demand for food is very inelastic compared to the supply of food,so if a tax is imposed on the consumers of food,the tax incidence:
A)is typically on consumers more than producers.
B)is typically on producers more than consumers.
C)is typically split equally between consumers and producers.
D)cannot be determined without more information.
Free
Multiple Choice
Q 43Q 43
Demand for Gala apples is relatively elastic compared to the supply of Gala apples,so if a tax is imposed on the consumers of Gala apples,the tax incidence:
A)is typically on consumers more than producers.
B)is typically on producers more than consumers.
C)is typically split equally between consumers and producers.
D)cannot be determined without more information.
Free
Multiple Choice
Q 44Q 44
Economic analysis shows that workers pay _____ of the FICA.
A)exactly half
B)very little
C)most
D)none
Free
Multiple Choice
Q 45Q 45
When workers earn income,they and their employer pay equal portions of FICA (the Federal Insurance Contributions Act).Which statement is TRUE?
A)The worker and the employer each bear half of the burden (incidence)of the tax.
B)The employer bears almost all of the burden of the tax.
C)The worker bears almost all of the burden of the tax.
D)It's impossible to determine who bears the burden of the tax.
Free
Multiple Choice
Q 46Q 46
By law,FICA (the Federal Insurance Contributions Act),a payroll tax,is collected equally from employers and employees.In reality:
A)the law works since the employers and the employees each bear half of the burden of the tax.
B)the employees bear almost all of the burden of the tax.
C)the employers bear almost all of the burden of the tax.
D)it's impossible to determine who bears the burden of the tax.
Free
Multiple Choice
Q 47Q 47
Use the following to answer questions 47-48:
-(Figure: The Shrimp Market)Use Figure: The Shrimp Market.If the government wants to limit shrimp sales to 500 pounds,it can impose a _____ excise tax on sellers,and the total tax revenue generated will be _____.
A)$5;$2,500
B)$7.50;$7,500
C)$10;$2,500
D)The answer cannot be determined from the information provided.
Free
Multiple Choice
Q 48Q 48
Use the following to answer questions 47-48:
-(Figure: The Shrimp Market)Use Figure: The Shrimp Market.If the government wants to limit shrimp sales to 250 pounds,it can impose a _____ excise tax on sellers,and the total tax revenue generated will be _____.
A)$5;$2,500
B)$7.50;$7,500
C)$10;$2,500
D)The answer cannot be determined from the information provided.
Free
Multiple Choice
Q 49Q 49
A higher tax rate is more likely to increase tax revenue if the price elasticity of demand is _____ and the price elasticity of supply is _____.
A)high;high
B)low;low
C)low;high
D)high;low
Free
Multiple Choice
Q 50Q 50
The amount of tax levied per unit of good or service is called the tax:
A)incidence.
B)rate.
C)revenue.
D)surplus.
Free
Multiple Choice
Q 51Q 51
A higher rate is MOST likely to decrease the amount of revenue that the government collects from an excise tax if demand is _____ and supply is _____.
A)elastic;elastic
B)elastic;inelastic
C)inelastic;elastic
D)inelastic;inelastic
Free
Multiple Choice
Q 52Q 52
If demand and supply are both very inelastic,a decrease in the rate of an excise tax will likely:
A)decrease government revenue.
B)increase government revenue.
C)not affect government revenue.
D)make demand and supply both elastic.
Free
Multiple Choice
Q 53Q 53
If demand and supply are both very elastic,a decrease in the rate of an excise tax will likely:
A)decrease government revenue.
B)increase government revenue.
C)not affect government revenue.
D)make demand and supply both inelastic.
Free
Multiple Choice
Q 54Q 54
If the elasticity of demand is _____ and the elasticity of supply is _____,tax revenue is likely to decrease if the tax rate is increased.
A)3.3;2.1
B)3.3;0.5
C)0.2;2.1
D)0.2;0.5
Free
Multiple Choice
Q 55Q 55
If the elasticity of demand is _____ and the elasticity of supply is _____,tax revenue is likely to increase if the tax rate is increased.
A)3.3;2.1
B)3.3;0.5
C)0.2;2.1
D)0.2;0.5
Free
Multiple Choice
Q 56Q 56
If the United States removed all excise taxes on cigarettes,which effect would NOT occur?
A)a decrease in producer surplus
B)an increase in producer surplus
C)an increase in consumer surplus
D)an increase in total surplus
Free
Multiple Choice
Q 57Q 57
When the government imposes an excise tax in a market with a downward-sloping demand curve and an upward-sloping supply curve:
A)consumer surplus falls.
B)producer surplus falls.
C)a deadweight loss occurs.
D)consumer surplus falls,producer surplus falls,and a deadweight loss occurs.
Free
Multiple Choice
Q 58Q 58
If the government removed the excise tax on gasoline,assuming that neither demand nor supply is perfectly inelastic,which effect would NOT occur?
A)an increase in consumer surplus
B)an increase in producer surplus
C)a decrease in producer surplus
D)an increase in total surplus
Free
Multiple Choice
Q 59Q 59
The deadweight loss from an excise tax comes about because:
A)the number of transactions in the market is smaller than the no-tax equilibrium.
B)some mutually beneficial transactions do not take place.
C)a quota rent exists.
D)the number of transactions in the market is reduced and some mutually beneficial transactions do not take place.
Free
Multiple Choice
Q 60Q 60
An excise tax causes inefficiency if the number of transactions in a market is reduced as a result of the tax.Because the tax discourages mutually beneficial transactions,there is a(n)_____ from a tax.
A)quota rent
B)deadweight loss
C)increased consumer surplus
D)increased producer surplus
Free
Multiple Choice
Q 61Q 61
A tax leads to a(n)_____ in consumer surplus and a(n)_____ in producer surplus.
A)increase;increase
B)increase;decrease
C)decrease;increase
D)decrease;decrease
Free
Multiple Choice
Q 62Q 62
The burden of a tax system comes from its:
A)effect on elasticity.
B)effect on marginal incentives.
C)inequity.
D)government revenue.
Free
Multiple Choice
Q 63Q 63
Assume the same upward supply curve for each of the following goods.Considering demand only,a tax on _____ would result in the LARGEST deadweight loss.
A)gasoline
B)medicine
C)restaurant meals
D)tobacco
Free
Multiple Choice
Q 64Q 64
If the government decides to impose a $700 tax on U.S.citizens vacationing abroad,then the deadweight loss from this tax will be:
A)relatively small.
B)relatively large.
C)zero.
D)absorbed by foreign governments.
Free
Multiple Choice
Q 65Q 65
The number of seats in a football stadium is fixed at 70,000.The city decides to impose a tax of $10 per ticket.In response,the team management raises the ticket price from $30 to $40 and still sells all 70,000 tickets.The tax caused a change in the consumer surplus of _____,a change in the producer surplus of _____,and a deadweight loss of _____.
A)-$10;$0;$10
B)-$700,000;$0;$700,000
C)-$10;$0;$0
D)-$700,000;$0;$0
Free
Multiple Choice
Q 66Q 66
Excise taxes that raise the MOST revenue and cause the LEAST deadweight loss are likely to be levied on goods for which demand is _____ and supply is _____.
A)inelastic;elastic
B)inelastic;inelastic
C)elastic;inelastic
D)elastic;elastic
Free
Multiple Choice
Q 67Q 67
The governor wants to levy a $1 excise tax on a product but wants to minimize the deadweight loss.The deadweight loss will be LEAST when the demand curve is _____ and the supply curve is _____.
A)elastic;elastic
B)elastic;inelastic
C)inelastic;elastic
D)inelastic;inelastic
Free
Multiple Choice
Q 68Q 68
If the demand for luxury yachts is very elastic,then a yacht tax would lead to:
A)a large deadweight loss.
B)no deadweight loss.
C)a small deadweight loss.
D)a large amount of tax revenue but no deadweight loss.
Free
Multiple Choice
Q 69Q 69
If demand is downward-sloping and supply is upward-sloping,which statement about the effects of an excise tax is INCORRECT?
A)The lower the elasticity of supply relative to the elasticity of demand,the lower the burden of the tax borne by suppliers.
B)An excise tax causes a deadweight loss because consumer and producer surpluses are reduced by more than the revenue the government collects.
C)An excise tax drives a wedge between the price paid by consumers and the price received by producers.
D)An excise tax is inefficient because it distorts incentives at the margin for both consumers and producers.
Free
Multiple Choice
Q 70Q 70
If the government wants to minimize the deadweight loss from taxes,it should tax goods for which the:
A)price elasticity of demand is high.
B)price elasticity of demand is low.
C)price elasticity of supply is high.
D)demand is high.
Free
Multiple Choice
Q 71Q 71
If the government levies an excise tax in a market whose demand curve is perfectly inelastic,the burden of the tax will fall completely on the _____,and the deadweight loss will equal _____.
A)consumers;zero
B)producers;zero
C)consumers;the tax revenue
D)producers;the tax revenue
Free
Multiple Choice
Q 72Q 72
If the government levies an excise tax in a market whose supply curve is perfectly inelastic,the burden of the tax will fall completely on the _____,and the deadweight loss will equal _____.
A)consumers;zero
B)producers;zero
C)consumers;the tax revenue
D)producers;the tax revenue
Free
Multiple Choice
Q 73Q 73
If you want to reduce the inefficiency costs of taxation,you should devise taxes to fall on goods for which the supply is _____ and the demand is _____.
A)elastic;elastic
B)inelastic;inelastic
C)elastic;inelastic
D)inelastic;elastic
Free
Multiple Choice
Q 74Q 74
If the main purpose of a tax is to decrease the amount of a harmful activity,such as underage drinking,the government should impose it on harmful activities whose supply is _____ and demand is _____.
A)elastic;elastic
B)inelastic;inelastic
C)elastic;inelastic
D)inelastic;elastic
Free
Multiple Choice
Q 75Q 75
Given any downward-sloping demand curve for a good,the more price-elastic the supply curve,the _____ equilibrium output will fall and the _____ will be the deadweight loss when the government imposes an excise tax.
A)more;smaller
B)more;larger
C)less;smaller
D)less;larger
Free
Multiple Choice
Q 76Q 76
Given any downward-sloping demand curve for a good,the more inelastic the supply curve,the _____ equilibrium output will fall and the _____ will be the deadweight loss when the government imposes an excise tax.
A)more;smaller
B)more;larger
C)less;smaller
D)less;larger
Free
Multiple Choice
Q 77Q 77
Given any upward-sloping supply curve for a good,the more elastic the demand curve,the _____ equilibrium output will fall and the _____ will be the deadweight loss when the government imposes an excise tax.
A)more;smaller
B)more;larger
C)less;smaller
D)less;larger
Free
Multiple Choice
Q 78Q 78
Given any upward-sloping supply curve for a good,the more inelastic the demand curve,the _____ equilibrium output will fall and the _____ will be the deadweight loss when the government imposes an excise tax.
A)more;smaller
B)more;larger
C)less;smaller
D)less;larger
Free
Multiple Choice
Q 79Q 79
An analysis of the effect of excise taxes on markets allows us to conclude that:
A)when the price elasticity of supply is equal to zero,an excise tax falls entirely on the consumers.
B)when the price elasticity of demand is lower than the price elasticity of supply,an excise tax falls mainly on the producers.
C)whether the tax is levied on consumers or producers,the quantity sold will be the same.
D)when the price elasticity of demand is higher than the price elasticity of supply,an excise tax falls mainly on the consumers.
Free
Multiple Choice
Q 80Q 80
The deadweight loss from an excise tax is largest if demand is _____ and supply is _____.
A)elastic;inelastic
B)inelastic;elastic
C)inelastic;inelastic
D)elastic;elastic
Free
Multiple Choice
Q 81Q 81
If the demand for good X is perfectly inelastic and a tax is levied on the producers of each unit:
A)consumers pay the entire tax,and deadweight loss will occur because the equilibrium quantity of good X falls.
B)consumers pay the entire tax,and there is no deadweight loss because the equilibrium quantity of good X remains constant.
C)consumers and producers share the burden of the tax,and there is no deadweight loss because the equilibrium quantity of good X remains constant.
D)producers pay the entire tax,and deadweight loss will occur because the equilibrium quantity of good X falls.
Free
Multiple Choice
Q 82Q 82
To minimize deadweight loss,markets where demand is relatively _____ and supply is relatively _____ should be taxed.
A)elastic;inelastic
B)elastic;elastic
C)inelastic;elastic
D)inelastic;inelastic
Free
Multiple Choice
Q 83Q 83
If demand is inelastic,then deadweight loss will:
A)be minimized if supply is also inelastic.
B)be maximized if supply is also inelastic.
C)decrease if demand becomes more elastic.
D)increase if supply becomes more inelastic.
Free
Multiple Choice
Q 84Q 84
Use the following to answer questions 84-86:
-(Figure and Table: The Market for Taxi Rides)Use Figure and Table: The Market for Taxi Rides.If the government imposes an excise tax of $1 per ride (causing the supply curve to shift upward by that amount),then the government will collect tax revenues of _____.However,the tax will cause a _____ deadweight loss to society.
A)$9 million;$0.5 million
B)$16 million;$1 million
C)$45 million;$1 million
D)$50 million;$0.5 million
Free
Multiple Choice
Q 85Q 85
Use the following to answer questions 84-86:
-(Figure and Table: The Market for Taxi Rides)Use Figure and Table: The Market for Taxi Rides.The figure represents a competitive market for taxi rides.If the government imposes an excise tax of $2 per ride (causing the supply curve to shift upward by that amount),then the government will collect tax revenues of _____,BUT the tax will cause a _____ deadweight loss to society.
A)$8 million;$1 million
B)$16 million;$2 million
C)$24 million;$4.5 million
D)$48 million;$6 million
Free
Multiple Choice
Q 86Q 86
Use the following to answer questions 84-86:
-(Figure and Table: The Market for Taxi Rides)Use Figure and Table: The Market for Taxi Rides.If the government imposes an excise tax of $1 per ride (causing the supply curve to shift upward by that amount),then people who ride taxis will pay _____ of each $1 tax.
A)$1
B)$0.50
C)$0.25
D)$0.00
Free
Multiple Choice
Q 87Q 87
Use the following to answer questions 87-90:
-(Figure: The Market for Hamburgers)Use Figure: The Market for Hamburgers.If the market is originally in equilibrium and the government imposes an excise tax of $0.80 per unit of the good sold,consumer surplus will be reduced by:
A)$175.
B)$240.
C)$105.
D)$90.
Free
Multiple Choice
Q 88Q 88
Use the following to answer questions 87-90:
-(Figure: The Market for Hamburgers)Use Figure: The Market for Hamburgers.If the market is originally in equilibrium and the government imposes an excise tax of $0.80 per hamburger,producer surplus will be reduced by:
A)$175.
B)$240.
C)$105.
D)$90.
Free
Multiple Choice
Q 89Q 89
Use the following to answer questions 87-90:
-(Figure: The Market for Hamburgers)Use Figure: The Market for Hamburgers.If the market is originally in equilibrium and the government imposes an excise tax of $0.80 per unit of the good sold,the deadweight loss associated with the tax will be:
A)$40.
B)$240.
C)$105.
D)$90.
Free
Multiple Choice
Q 90Q 90
Use the following to answer questions 87-90:
-(Figure: The Market for Hamburgers)Use Figure: The Market for Hamburgers.If the market is originally in equilibrium and the government imposes an excise tax of $0.80 per unit of the good sold,the government's revenue from the tax will be:
A)$175.
B)$240.
C)$105.
D)$90.
Free
Multiple Choice
Q 91Q 91
Use the following to answer questions 87-90:
-When the government imposes an excise tax,the deadweight loss is caused by:
A)equal the tax revenue paid to the government.
B)be greater than the tax revenue paid to the government.
C)be less than the tax revenue paid to the government.
D)prevention of transactions because of the cost of the tax.
Free
Multiple Choice
Q 92Q 92
Use the following to answer questions 87-90:
-(Figure: The Market for Music Downloads)Use Figure: The Market for Music Downloads.If the government imposes a tax of $3 in this market,the government will receive tax revenue of:
A)$20.
B)$30.
C)$60.
D)$75.
Free
Multiple Choice
Q 93Q 93
Use the following to answer questions 87-90:
-(Figure: The Market for Music Downloads)Use Figure: The Market for Music Downloads.If the government imposes a tax of $3 in this market,the deadweight loss will equal:
A)$0.
B)$22.50.
C)$26.25.
D)$52.50.
Free
Multiple Choice
Q 94Q 94
Use the following to answer questions 87-90:
-A tax:
A)generates tax revenue and causes deadweight loss.
B)increases consumer and producer surplus.
C)produces revenue for the government and increases total surplus.
D)is always efficient.
Free
Multiple Choice
Q 95Q 95
Use the following to answer questions 95-101:
-(Figure: The Market for Blue Jeans)Use Figure: The Market for Blue Jeans.The government recently levied a $10 tax on the producers of blue jeans.What area or areas in the graph identify tax revenue?
A)a + b + c
B)b + d
C)c + e
D)d + e + f
Free
Multiple Choice
Q 96Q 96
Use the following to answer questions 95-101:
-(Figure: The Market for Blue Jeans)Use Figure: The Market for Blue Jeans.The government recently levied a $10 tax on the producers of blue jeans.What area or areas in the graph identify consumer and producer surplus after the tax was levied?
A)a + b + c
B)a + b + c + d + e + f
C)d + e + f
D)a + f
Free
Multiple Choice
Q 97Q 97
Use the following to answer questions 95-101:
-(Figure: The Market for Blue Jeans)Use Figure: The Market for Blue Jeans.The government recently levied a $10 tax on the producers of blue jeans.What area or areas in the graph identify deadweight loss?
A)a + b + c
B)b + d
C)c + e
D)d + e + f
Free
Multiple Choice
Q 98Q 98
Use the following to answer questions 95-101:
-(Figure: The Market for Blue Jeans)Use Figure: The Market for Blue Jeans.The government recently levied a $10 tax on the producers of blue jeans.What area or areas in the graph identify the loss of consumer surplus due to the tax?
A)c
B)b + c
C)b
D)a + b + c
Free
Multiple Choice
Q 99Q 99
Use the following to answer questions 95-101:
-(Figure: The Market for Blue Jeans)Use Figure: The Market for Blue Jeans.The government recently levied a $10 tax on the producers of blue jeans.What area or areas in the graph identify the loss of producer surplus due to the tax?
A)d + e
B)e
C)d
D)d + e + f
Free
Multiple Choice
Q 100Q 100
Use the following to answer questions 95-101:
-(Figure: The Market for Blue Jeans)Use Figure: The Market for Blue Jeans.The government recently levied a $10 tax on the producers of blue jeans.What is the deadweight loss?
A)$1,000
B)$500
C)$250
D)$1,250
Free
Multiple Choice
Q 101Q 101
Use the following to answer questions 95-101:
-(Figure: The Market for Blue Jeans)Use Figure: The Market for Blue Jeans.The government recently levied a $10 tax on the producers of blue jeans.What is the tax revenue?
A)$1,000
B)$500
C)$4,000
D)$5,000
Free
Multiple Choice
Q 102Q 102
The two principles of tax fairness are:
A)the minimize-distortions principle and the maximize-revenue principle.
B)the benefits principle and the ability-to-pay principle.
C)the proportional-tax principle and the ability-to-pay principle.
D)the equity principle and the efficiency principle.
Free
Multiple Choice
Q 103Q 103
The ability-to-pay principle says that:
A)the amount of tax paid depends on the measure of value.
B)those who benefit from public spending should bear the burden of the tax that pays for that spending.
C)those with greater ability to pay should pay more tax.
D)those who benefit from the tax should pay the same percentage of the tax base as those who do not benefit.
Free
Multiple Choice
Q 104Q 104
A lump-sum tax,such as the fee for a driver's license,does not take into consideration:
A)efficiency.
B)the benefits principle.
C)the ability-to-pay principle.
D)the tax base.
Free
Multiple Choice
Q 105Q 105
Which situation demonstrates the benefits principle?
A)Employed workers pay taxes that are used to fund technical training programs.
B)Revenue from the federal tax on gasoline is used to maintain and improve the interstate highway system.
C)Most of the revenue from property taxes is used to fund public schools.The taxes are paid by all homeowners.
D)Taxes on cigarettes are used to pay state employees' salaries.
Free
Multiple Choice
Q 106Q 106
The benefits principle says that:
A)the amount of tax paid depends on the measure of value.
B)those who benefit from public spending should bear the burden of the tax that pays for that spending.
C)those with greater ability to pay should pay more tax.
D)those who benefit from the tax should pay the same percentage of the tax base as those who do not benefit.
Free
Multiple Choice
Q 107Q 107
Which tax reflects the ability-to-pay principle?
A)the federal income tax
B)the payroll tax
C)a sales tax on food
D)Social Security tax
Free
Multiple Choice
Q 108Q 108
Criteria that economists use in selecting a tax system include:
A)the ability to pay.
B)employment status.
C)consumer debt.
D)the maximal deadweight loss.
Free
Multiple Choice
Q 109Q 109
The _____ principle implies that people with _____ should pay more taxes.
A)ability-to-pay;greater benefits received
B)benefits;higher incomes
C)ability-to-pay;higher incomes
D)benefits;fewer benefits
Free
Multiple Choice
Q 110Q 110
A principle suggesting that people with more income or wealth should pay more taxes is the _____ principle.
A)ability-to-pay
B)regressive tax
C)progressive tax
D)benefits
Free
Multiple Choice
Q 111Q 111
Taxation according to the benefits principle is best illustrated in the United States by:
A)personal income tax
B)sales tax
C)corporate income tax
D)gasoline tax
Free
Multiple Choice
Q 112Q 112
Paying a fee every time you use the municipal golf course is an example of the _____ principle.
A)benefits
B)ability-to-pay
C)progressive tax
D)regressive tax
Free
Multiple Choice
Q 113Q 113
Taxation according to the ability-to-pay principle is best illustrated in the United States by:
A)sales taxes.
B)income taxes.
C)excise taxes.
D)user fees.
Free
Multiple Choice
Q 114Q 114
Since the terrorist attacks of September 11,2001,the Federal Aviation Agency has added a small security fee to every airplane ticket purchased.This is an example of:
A)the benefits principle of tax fairness.
B)a lump-sum tax.
C)the ability-to-pay principle of tax fairness.
D)a profits tax.
Free
Multiple Choice
Q 115Q 115
According to the _____ principle,those who use public services should bear the burden of the tax that pays for them.
A)ability-to-pay
B)tax fairness
C)benefits
D)spending
Free
Multiple Choice
Q 116Q 116
According to the _____ principle,those who can afford it should pay higher tax.
A)ability-to-pay
B)tax fairness
C)benefits
D)affordability
Free
Multiple Choice
Q 117Q 117
Which tax BEST illustrates the benefits principle of tax fairness?
A)The local city playground is funded through a tax on all citizens.
B)Roads and highways are built and maintained through revenue from a tax on gasoline.
C)A property tax that is proportional to the value of the home is charged to homeowners to fund primary and secondary education.
D)A sales tax on food pays for police and fire protection.
Free
Multiple Choice
Q 118Q 118
Which tax BEST illustrates the ability-to-pay principle of tax fairness?
A)The local city playground is funded by a tax on all citizens.
B)Roads and highways are built and maintained by revenue from a tax on gasoline.
C)A property tax that is proportional to the value of the home is charged to homeowners to fund primary and secondary education.
D)A sales tax on food pays for police and fire protection.
Free
Multiple Choice
Q 119Q 119
A principle suggesting that people with more income or wealth should pay more taxes is the _____ principle.
A)ability-to-pay
B)proportional tax
C)lump-sum tax
D)benefits received
Free
Multiple Choice
Q 120Q 120
Taxation according to the ability-to-pay principle is best illustrated in the United States by _____ taxes.
A)sales
B)personal income
C)excise
D)gasoline
Free
Multiple Choice
Q 121Q 121
Taxation according to the benefits-received principle is best illustrated by the _____ tax.
A)income
B)sales
C)gift
D)gasoline
Free
Multiple Choice
Q 122Q 122
You have to pay a fee every time you use your community swimming pool.This is an example of the _____ principle.
A)regressive tax
B)ability-to-pay
C)progressive tax
D)benefits
Free
Multiple Choice
Q 123Q 123
If tax efficiency is the only goal,a tax system should be designed to minimize its:
A)burden.
B)administrative costs.
C)impact on the poor.
D)burden and its administrative costs.
Free
Multiple Choice
Q 124Q 124
A tax system achieves equity when:
A)taxes are distributed fairly,however society may define fair.
B)it minimizes the costs to the economy of tax collection.
C)it is efficient.
D)taxes are lump sum.
Free
Multiple Choice
Q 125Q 125
A tax system achieves efficiency when:
A)the right people actually bear the burden of taxes.
B)it minimizes the costs to the economy of tax collection.
C)the tax is fair.
D)it is in equilibrium.
Free
Multiple Choice
Q 126Q 126
If a tax system is poorly designed,it may be possible to increase:
A)efficiency without sacrificing equity.
B)equity while causing inefficiency.
C)efficiency by sacrificing equity.
D)equity without causing inefficiency or increase efficiency without sacrificing equity.
Free
Multiple Choice
Q 127Q 127
Suppose Congress passed a new tax system,such that all federal,state,and local taxes were replaced with one tax: a tax of $14,000 for every person 18 and over.This new tax system would clearly improve:
A)tax equity.
B)tax fairness.
C)tax efficiency.
D)government revenue.
Free
Multiple Choice
Q 128Q 128
A tax system _____ when it minimizes the direct and indirect costs to the economy of tax collection.
A)is efficient
B)is equitable
C)has no deadweight loss
D)is in equilibrium
Free
Multiple Choice
Q 129Q 129
A tax system _____ when taxes are distributed fairly.
A)is efficient
B)is equitable
C)has no deadweight loss
D)is in equilibrium
Free
Multiple Choice
Q 130Q 130
If a tax system is designed to minimize the sum of its deadweight loss and its administrative cost,its principal goal is:
A)maximizing efficiency.
B)maximizing equity.
C)maximizing revenue.
D)minimizing the tax burden.
Free
Multiple Choice
Q 131Q 131
_____ tax does NOT distort incentives and is best at promoting economic efficiency.
A)A lump-sum
B)FICA
C)A property
D)An income
Free
Multiple Choice
Q 132Q 132
If a tax system is well designed:
A)it maximizes efficiency.
B)it maximizes fairness.
C)then efficiency can be improved only by making the system less fair.
D)it maximizes efficiency and equity.
Free
Multiple Choice
Q 133Q 133
Which statement is CORRECT?
A)If the government can make the tax system fairer without sacrificing efficiency,it should do so to maximize equity.
B)If the government can make the tax system fairer without sacrificing efficiency,then the existing tax system is perfectly designed.
C)There is no trade-off between equity and efficiency in the tax system.
D)If the government can make the tax system fairer without sacrificing efficiency,it should seek to maximize equity at the expense of efficiency.
Free
Multiple Choice
Q 134Q 134
The richest 20% of families in the United States pay a much _____ share of total income taxes collected and a _____ share of FICA taxes than their share of total income.
A)higher;lower
B)lower;higher
C)higher;higher
D)lower;lower
Free
Multiple Choice
Q 135Q 135
The poorest 20% of families in the United States pay a _____ share of their total income in taxes.
A)very large
B)somewhat large
C)small
D)negative
Free
Multiple Choice
Q 136Q 136
Use the following to answer questions 136-138:
-(Figure: Income Tax Payments)Use Figure: Income Tax Payments.Which panel or panels BEST represent the effects of a progressive income tax?
A)A
B)B
C)C
D)A and B
Free
Multiple Choice
Q 137Q 137
Use the following to answer questions 136-138:
-(Figure: Income Tax Payments)Use Figure: Income Tax Payments.Which panel or panels BEST represent the effects of a proportional income tax?
A)A
B)B
C)C
D)A and B
Free
Multiple Choice
Q 138Q 138
Use the following to answer questions 136-138:
-(Figure: Income Tax Payments)Use Figure: Income Tax Payments.Which panel or panels BEST represent the effects of a regressive income tax?
A)A
B)B
C)C
D)A and B
Free
Multiple Choice
Q 139Q 139
Brianna and Jess must pay an income tax.Both Brianna and Jess pay $1,000 in taxes each year,but Brianna earns $20,000 and Jess earns $10,000.From this information,you can infer that this tax is:
A)progressive.
B)regressive.
C)proportional.
D)equitable.
Free
Multiple Choice
Q 140Q 140
Suppose an income tax is levied on none of the first $1,000,10% of the next $10,000,and 20% of the remainder of earnings.This type of tax can be defined as:
A)progressive.
B)proportional.
C)regressive.
D)equitable.
Free
Multiple Choice
Q 141Q 141
Suppose an income tax is levied on none of the first $1,000,10% of the next $9,000,and 20% of the remainder of earnings.How much tax would Miranda have to pay if she earned $20,000?
A)$2,900
B)$5,000
C)$4,900
D)$3,000
Free
Multiple Choice
Q 142Q 142
A _____ tax takes a larger share of the income of high-income taxpayers than of low-income taxpayers.
A)sales
B)regressive
C)progressive
D)flat
Free
Multiple Choice
Q 143Q 143
A tax that rises less than in proportion to income is described as:
A)progressive.
B)proportional.
C)regressive.
D)structural.
Free
Multiple Choice
Q 144Q 144
A progressive tax:
A)takes a larger share of the income of high-income taxpayers than of low-income taxpayers.
B)takes a smaller share of the income of high-income taxpayers than of low-income taxpayers.
C)takes the same share of the income of high-income taxpayers as it does of low-income taxpayers.
D)has no deadweight loss.
Free
Multiple Choice
Q 145Q 145
Suppose Governor Meridias decides to initiate a state income tax.The first $50,000 of household income is tax-free,while any income above $50,000 is taxed at 10%.A household earning $50,000 has a marginal tax rate of _____% and a tax rate of _____%.
A)10;10
B)10;0
C)0;0
D)0;10
Free
Multiple Choice
Q 146Q 146
Suppose Governor Meridias decides to initiate a state income tax.The first $50,000 of household income is tax-free,while any income above $50,000 is taxed at 10%.The marginal tax rate for a household earning $75,000 is:
A)greater than its average tax rate.
B)less than its average tax rate.
C)equal to its average tax rate.
D)3.3%.
Free
Multiple Choice
Q 147Q 147
If personal income up to and including $25,000 is not taxed,income of $25,001 to $50,000 is taxed at 10%,and income over $50,000 is taxed at 25%,a family earning $60,000 of income will pay _____ in personal taxes.
A)$5,000
B)$8,000
C)$11,250
D)$16,000
Free
Multiple Choice
Q 148Q 148
Paying a tax of $20 on an income of $100,a tax of $15 on an income of $200,and a tax of $12 on an income of $300 is an example of a _____ tax.
A)flat
B)proportional
C)progressive
D)regressive
Free
Multiple Choice
Q 149Q 149
A _____ tax takes a fixed percentage of income,regardless of the level of income.
A)proportional
B)benefits
C)progressive
D)regressive
Free
Multiple Choice
Q 150Q 150
A tax of $10 on an income of $100,$20 on an income of $200,and $30 on an income of $300 is:
A)regressive.
B)proportional.
C)progressive.
D)benefits.
Free
Multiple Choice
Q 151Q 151
A tax that takes a higher percentage of income as income rises is:
A)proportional.
B)an ability tax.
C)progressive.
D)regressive.
Free
Multiple Choice
Q 152Q 152
A tax of $10 on an income of $100,$25 on an income of $200,and $60 on an income of $300 is:
A)progressive.
B)proportional.
C)regressive.
D)flat.
Free
Multiple Choice
Q 153Q 153
A tax that takes a _____ percentage of income as income _____ is a _____ tax.
A)lower;rises;progressive
B)lower;rises;regressive
C)higher;rises;proportional
D)higher;falls;proportional
Free
Multiple Choice
Q 154Q 154
A tax is progressive if the tax payment is a:
A)fixed percentage of income.
B)lower percentage of income as income rises.
C)higher percentage of income as income rises.
D)higher percentage of income as income falls.
Free
Multiple Choice
Free
Multiple Choice
Free
Multiple Choice
Q 157Q 157
_____ taxes are paid on the purchase of most consumption goods.
A)Income
B)Property
C)Sales
D)Wealth
Free
Multiple Choice
Q 158Q 158
The government imposes a tax of $1,000 per household to fund a new public swimming pool.This tax is:
A)regressive.
B)proportional.
C)progressive.
D)flat.
Free
Multiple Choice
Q 159Q 159
A tax of $15 on an income of $200,$10 on an income of $300,and $8 on an income of $400 is:
A)constant-rate.
B)proportional.
C)progressive.
D)regressive.
Free
Multiple Choice
Q 160Q 160
A tax that takes a _____ is _____.
A)fixed percentage of income;proportional
B)fixed percentage of income;a benefits tax
C)a smaller share of high income than of low income;progressive
D)larger share of high income than of low income;regressive
Free
Multiple Choice
Q 161Q 161
A tax of $20 on an income of $200,$40 on an income of $400,and $50 on an income of $500 is:
A)regressive.
B)proportional.
C)progressive.
D)inverse.
Free
Multiple Choice
Q 162Q 162
A tax that takes a _____ percentage of income as income rises is _____.
A)higher;proportional
B)lower;an ability tax
C)higher;progressive
D)lower;a marginal tax
Free
Multiple Choice
Q 163Q 163
A tax of $20 on an income of $200,$40 on an income of $300,and $80 on an income of $400 is:
A)progressive.
B)proportional.
C)regressive.
D)constant-rate.
Free
Multiple Choice
Q 164Q 164
A regressive tax:
A)takes a higher percentage of income as income rises.
B)rises less than in proportion to income.
C)takes a fixed percentage of income regardless of the taxpayer's level of income.
D)takes a larger share of the income of high-income taxpayers than of low-income taxpayers.
Free
Multiple Choice
Q 165Q 165
A regressive tax takes a:
A)fixed percentage of income.
B)lower percentage of income as income rises.
C)higher percentage of income as income rises.
D)lower percentage of income as income falls.
Free
Multiple Choice
Q 166Q 166
The percentage of an increase in a taxpayer's income that is taxed away is the _____ rate.
A)marginal tax
B)tax
C)total tax
D)lower tax
Free
Multiple Choice
Q 167Q 167
If the marginal tax rate is higher than the average rate,the tax system is:
A)proportional.
B)progressive.
C)constant.
D)regressive.
Free
Multiple Choice
Q 168Q 168
If the marginal tax rate is less than the average tax rate,the tax system is:
A)proportional.
B)progressive.
C)digressive.
D)regressive.
Free
Multiple Choice
Q 169Q 169
If the marginal tax rate equals the average tax rate,the tax system is:
A)proportional.
B)progressive.
C)digressive.
D)regressive.
Free
Multiple Choice
Q 170Q 170
In 2016,the Social Security (FICA)tax was levied only on incomes up to $118,500.Which statement about this tax is CORRECT?
A)A worker with an annual income of $50,000 and one with an annual income of $100,000 paid the same dollar amount of FICA tax.
B)A worker with an annual income of $200,000 and one with an annual income of $118,500 paid the same dollar amount of FICA tax.
C)The top 20% of income earners earned over 50% of total U.S.incomes in 2001,and they paid approximately 60% of the total FICA taxes collected that year.
D)The percentage of income paid in FICA taxes was the same for a worker with an annual income of $50,000 and a worker with an annual income of $100,000.
Free
Multiple Choice
Q 171Q 171
Income tax rates are such that Mr.R.Hood earns $35,000 per year and pays $7,000 in taxes,while Mr.G.Gisbourne earns $1 million per year and pays $200,000 in taxes.This tax is:
A)progressive.
B)regressive.
C)proportional.
D)a lump-sum tax.
Free
Multiple Choice
Q 172Q 172
An efficient way to finance the provision of city services such as street cleaning would be to charge all city residents a lump-sum tax.Such a tax would be:
A)progressive.
B)regressive.
C)proportional.
D)This question can't be answered without knowing the amount of the tax.
Free
Multiple Choice
Q 173Q 173
Suppose Governor Meridias initiates a payroll tax of 10% on all income up to $50,000.Any income above $50,000 is not taxed.This payroll tax will be:
A)progressive.
B)proportional.
C)regressive.
D)structural.
Free
Multiple Choice
Q 174Q 174
Use the following to answer questions 174-177:
-(Table: Taxes,Spending,and Income)Use Table: Taxes,Spending,and Income.Suppose Governor Meridias decides to initiate a state tax of 5% on all sales.This tax will be:
A)progressive.
B)proportional.
C)regressive.
D)structural.
Free
Multiple Choice
Q 175Q 175
Use the following to answer questions 174-177:
-(Table: Taxes,Spending,and Income)Use Table: Taxes,Spending,and Income.Suppose Governor Meridias decides to initiate a state tax of 5% on all sales.A poor household will spend _____% of its annual income on the sales tax,while a wealthy household will spend _____% of its annual income.
A)4.5;4
B)5;5
C)5;3.5
D)3.5;4.5
Free
Multiple Choice
Q 176Q 176
Use the following to answer questions 174-177:
-(Table: Taxes,Spending,and Income)Use Table: Taxes,Spending,and Income.Suppose Governor Meridias decides to initiate a state income tax.The first $50,000 of household income is tax-free,while any income above $50,000 is taxed at 10%.The tax rate for a household earning $75,000 is _____%.
A)10
B)5
C)3.3
D)0
Free
Multiple Choice
Q 177Q 177
Use the following to answer questions 174-177:
-(Table: Taxes,Spending,and Income)Use Table: Taxes,Spending,and Income.Suppose Governor Meridias initiates a tax of 10% on all income up to $50,000.Income above $50,000 is not taxed.An individual earning $75,000 will have a average tax rate of _____%.
A)10
B)0
C)6.67
D)5
Free
Multiple Choice
Q 178Q 178
If personal income up to and including $25,000 is not taxed,income of $25,001 to $50,000 is taxed at 10%,and income over $50,000 is taxed at 25%,a family earning income equal to $60,000 will pay a marginal tax rate of _____% and a average tax rate of _____%.
A)12.5;25
B)10;15
C)25;8.3
D)25;25
Free
Multiple Choice
Q 179Q 179
The _____ rate applies to an additional $1 of taxable income.
A)marginal tax
B)tax
C)total tax
D)lower tax
Free
Multiple Choice
Q 180Q 180
Eli has annual earnings of $100,000 and Molly has annual earnings of $50,000.Each consumer goes to the mall and purchases a microwave oven for $100,and each pays an additional 7%,or $7,in sales tax.This tax is:
A)regressive.
B)a wealth tax.
C)progressive.
D)a property tax.
Free
Multiple Choice
Q 181Q 181
U.S.federal taxes are generally _____,while state and local taxes are generally _____.
A)progressive;progressive
B)progressive;regressive
C)regressive;progressive
D)regressive;regressive
Free
Multiple Choice
Q 182Q 182
The U.S.income tax is _____,while the FICA tax is _____.
A)progressive;progressive
B)progressive;regressive
C)regressive;progressive
D)regressive;regressive
Free
Multiple Choice
Q 183Q 183
The _____ rate on income represents the additional tax an individual pays if his or her income goes up by $1.This rate has _____ since 2000.
A)tax;increased
B)marginal tax;decreased
C)marginal tax;increased
D)tax;decreased
Free
Multiple Choice
Q 184Q 184
_____ and _____ taxes are the LARGEST sources of state and local government revenue.
A)Profit;sales
B)Property;sales
C)FICA;income
D)Sales;income
Free
Multiple Choice
Q 185Q 185
Sales taxes are considered to be:
A)proportional.
B)progressive.
C)digressive.
D)regressive.
Free
Multiple Choice
Free
Multiple Choice
Q 187Q 187
The evidence suggests that federal taxes in the U.S.economy are:
A)regressive.
B)progressive.
C)higher than they've ever been before.
D)proportional.
Free
Multiple Choice
Q 188Q 188
The evidence suggests that taken collectively,taxes in the U.S.economy are:
A)extremely regressive.
B)extremely progressive.
C)somewhat progressive.
D)proportional.
Free
Multiple Choice
Q 189Q 189
Sales taxes are considered to be:
A)an unfair burden on wealthy people,who spend more money on goods subject to sales tax.
B)progressive.
C)the most important source of revenue for the federal government.
D)regressive.
Free
Multiple Choice
Q 190Q 190
The structure of the U.S.federal income tax system reflects the _____ principle.
A)efficiency
B)ability-to-pay
C)benefits
D)lump-sum
Free
Multiple Choice
Q 191Q 191
Which tax is the LARGEST source of federal government revenue?
A)sales
B)property
C)individual income
D)death
Free
Multiple Choice
Q 192Q 192
The two most important sources of federal revenue are the _____ taxes.
A)FICA and personal income
B)corporate income and FICA
C)excise and personal income
D)Social Security and excise
Free
Multiple Choice
Q 193Q 193
_____ tax is NOT a major source of revenue for the federal government.
A)Income
B)FICA
C)Profits
D)Property
Free
Multiple Choice
Q 194Q 194
Because of tax competition,state and local taxes tend to be _____;however,federal taxes tend to be _____.
A)regressive;regressive
B)progressive;regressive
C)progressive;progressive
D)regressive;progressive
Free
Multiple Choice
Q 195Q 195
A(n)_____ tax tends to encourage consumption and discourage saving and investing.
A)consumption
B)sales
C)poll
D)income
Free
Multiple Choice
Free
Multiple Choice
Q 197Q 197
If personal income up to and including $25,000 is not taxed,income of $25,001 to $50,000 is taxed at 10%,and income over $50,000 is taxed at 20%,then a family earning an income of $75,000 will pay _____ in personal taxes.
A)$6,000
B)$7,500
C)$11,250
D)$15,000
Free
Multiple Choice
Q 198Q 198
If personal income up to and including $25,000 is not taxed,income of $25,001 to $50,000 is taxed at 10%,and income over $50,000 is taxed at 20%,then a family earning an income of $75,000 will pay a n AVERAGE tax rate of _____%.
A)5
B)7.5
C)10
D)20
Free
Multiple Choice
Q 199Q 199
If personal income up to and including $25,000 is not taxed,income of $25,001 to $50,000 is taxed at 10%,and income over $50,000 is taxed at 20%,then a family earning an income of $75,000 will pay a marginal tax rate of _____%.
A)5
B)7.5
C)10
D)20
Free
Multiple Choice
Q 200Q 200
If personal income up to and including $30,000 is not taxed,income of $30,001 to $60,000 is taxed at 10%,and income over $60,000 is taxed at 25%,then a family earning an income of $100,000 will pay _____ in personal taxes.
A)$6,000
B)$10,000
C)$13,000
D)$25,000
Free
Multiple Choice
Q 201Q 201
If personal income up to and including $30,000 is not taxed,income of $30,001 to $60,000 is taxed at 10%,and income over $60,000 is taxed at 25%,then a family earning an income of $100,000 will pay a n AVERAGE tax rate of _____%.
A)5
B)10
C)13
D)25
Free
Multiple Choice
Q 202Q 202
If personal income up to and including $30,000 is not taxed,income of $30,001 to $60,000 is taxed at 10%,and income over $60,000 is taxed at 25%,then a family earning an income of $100,000 will pay a marginal tax rate of _____%.
A)5
B)10
C)13
D)25
Free
Multiple Choice
Q 203Q 203
Use the following to answer questions 203-212:
-(Figure: Tax Incidence)Use Figure: Tax Incidence.All other things unchanged,when a good or service is characterized by a relatively elastic supply,as shown in panel _____,a greater share of the burden of an excise tax is borne by _____.
A)A;buyers
B)B;sellers
C)B;buyers
D)A;sellers
Free
Multiple Choice
Q 204Q 204
Use the following to answer questions 203-212:
-(Figure: Tax Incidence)Use Figure: Tax Incidence.All other things unchanged,when a good or service is characterized by a relatively inelastic supply,as shown in panel _____,a greater share of the burden of an excise tax is borne by _____.
A)A;buyers
B)B;sellers
C)A;sellers
D)B;buyers
Free
Multiple Choice
Q 205Q 205
Use the following to answer questions 203-212:
-(Figure: Tax Incidence)Use Figure: Tax Incidence.All other things unchanged,when a good or service is characterized by a relatively elastic demand,as shown in panel _____,the greater share of the burden of an excise tax on it is borne by _____.
A)D;buyers
B)D;sellers
C)C;sellers
D)C;buyers
Free
Multiple Choice
Q 206Q 206
Use the following to answer questions 203-212:
-(Figure: Tax Incidence)Use Figure: Tax Incidence.All other things unchanged,when a good or service is characterized by a relatively inelastic demand,as shown in panel _____,the greater share of the burden of an excise tax on it is borne by _____.
A)C;buyers
B)C;sellers
C)D;sellers
D)D;buyers
Free
Multiple Choice
Q 207Q 207
Use the following to answer questions 203-212:
-(Figure: Tax Incidence)Use Figure: Tax Incidence.All other things unchanged,the effect of an excise tax on gasoline in the short run is most likely illustrated by panel _____,and the greater share of the burden of the excise tax (shown by the tax wedge in each panel)is borne by _____.
A)C;buyers
B)D;sellers
C)C;sellers
D)D;buyers
Free
Multiple Choice
Q 208Q 208
Use the following to answer questions 203-212:
-(Figure: Tax Incidence)Use Figure: Tax Incidence.All other things unchanged,the effect of an excise tax on gasoline in the long run is most likely illustrated by panel _____,and the greater share of the burden of the excise tax (shown by the tax wedge in each panel)is borne by _____.
A)A;buyers
B)B;sellers
C)B;buyers
D)A;sellers
Free
Multiple Choice
Q 209Q 209
Use the following to answer questions 203-212:
-(Figure: Tax Incidence)Use Figure: Tax Incidence.Based on the figure,the deadweight loss of an excise tax is likely to be greater in panel _____ than in panel _____.
A)C;D
B)C;A
C)D;A
D)B;A
Free
Multiple Choice
Q 210Q 210
Use the following to answer questions 203-212:
-(Figure: Tax Incidence)Use Figure: Tax Incidence.Based on the figure,the deadweight loss of an excise tax is likely to be greater in panel _____ than in panel _____.
A)D;C
B)A;B
C)C;B
D)B;A
Free
Multiple Choice
Q 211Q 211
Use the following to answer questions 203-212:
-(Figure: Tax Incidence)Use Figure: Tax Incidence.Consumers are likely to bear more of the burden of an excise tax in the situations illustrated by panels:
A)A and B.
B)A and D.
C)B and D.
D)B and C.
Free
Multiple Choice
Q 212Q 212
Use the following to answer questions 203-212:
-(Figure: Tax Incidence)Use Figure: Tax Incidence.Producers are likely to bear more of the burden of an excise tax in the situations illustrated by panels:
A)A and B.
B)A and C.
C)B and D.
D)B and C.
Free
Multiple Choice
Q 213Q 213
Use the following to answer questions 213-216:
-(Figure: The Gasoline Market)Use Figure: The Gasoline Market.The pretax equilibrium price is $3,and the equilibrium quantity before tax is 20,000 gallons.An excise tax has been levied on each gallon of gasoline supplied by producers.Based on the graph,the incidence of the tax on suppliers is:
A)$1.50.
B)$1.
C)$0.75.
D)$15,000.
Free
Multiple Choice
Q 214Q 214
Use the following to answer questions 213-216:
-(Figure: The Gasoline Market)Use Figure: The Gasoline Market.The pretax equilibrium price is $3,and the equilibrium quantity before tax is 20,000 gallons.An excise tax has been levied on each gallon of gasoline supplied by producers,shifting the supply curve upward.What is the tax rate?
A)$1.75 per gallon
B)$1 per gallon
C)$2.50
D)$0.50
Free
Multiple Choice
Q 215Q 215
Use the following to answer questions 213-216:
-(Figure: The Gasoline Market)Use Figure: The Gasoline Market.The pretax equilibrium price is $3,and the equilibrium quantity before tax is 20,000 gallons.An excise tax has been levied on each gallon of gasoline supplied by producers,shifting the supply curve upward.The total tax revenue collected by the government is equal to:
A)$1.50.
B)$15,000.
C)$26,250.
D)$30,000.
Free
Multiple Choice
Q 216Q 216
Use the following to answer questions 213-216:
-(Figure: The Gasoline Market)Use Figure: The Gasoline Market.The pretax equilibrium price is $3,and the equilibrium quantity before tax is 20,000 gallons.An excise tax has been levied on each gallon of gasoline,shifting the supply curve upward.The deadweight loss from this tax is equal to:
A)$1.50.
B)$5,000.
C)$15,000.
D)$4,375.
Free
Multiple Choice
Q 217Q 217
Use the following to answer questions 217-221:
-(Figure: The Market for Lattes)Use Figure: The Market for Lattes.If the government assesses a tax of $0.75 on each latte,the price the consumer pays for a latte after the tax will:
A)increase from $2 to $2.75.
B)increase from $2 to $2.50.
C)increase from $2 to $2.25.
D)change,but we cannot determine by how much.
Free
Multiple Choice
Q 218Q 218
Use the following to answer questions 217-221:
-(Figure: The Market for Lattes)Use Figure: The Market for Lattes.If the government assesses a tax of $0.75 on sellers of lattes,the price producers will receive for a latte after the tax will:
A)decrease from $2 to $1.75.
B)decrease from $2 to $1.50.
C)decrease from $2 to $1.25.
D)change,but we cannot determine by how much.
Free
Multiple Choice
Q 219Q 219
Use the following to answer questions 217-221:
-(Figure: The Market for Lattes)Use Figure: The Market for Lattes.If an excise tax of $1.50 is assessed on each latte,government revenue will be:
A)$400.
B)$600.
C)$800.
D)$1,200.
Free
Multiple Choice
Q 220Q 220
Use the following to answer questions 217-221:
-(Figure: The Market for Lattes)Use Figure: The Market for Lattes.If an excise tax of $2.25 is assessed on each latte,government revenue will be:
A)$225.
B)$400.
C)$450.
D)$1,800.
Free
Multiple Choice
Q 221Q 221
Use the following to answer questions 217-221:
-(Figure: The Market for Lattes)Use Figure: The Market for Lattes.If the excise tax increases from $1.50 to $2.25 per latte,government revenue will _____ by _____.
A)decrease;$150
B)decrease;$75
C)increase;$150
D)increase;$225
Free
Multiple Choice
Q 222Q 222
Use the following to answer questions 222-231:
-(Figure: The Market for SUVs)Use Figure: The Market for SUVs.If the government imposes a $60,000 tax on SUVs and collects it from the consumers,the _____ curve will shift _____ by _____.
A)supply;upward;$30,000
B)supply;upward;$60,000
C)demand;downward;$30,000
D)demand;downward;$60,000
Free
Multiple Choice
Q 223Q 223
Use the following to answer questions 222-231:
-(Figure: The Market for SUVs)Use Figure: The Market for SUVs..A quota of _____ will bring about the same price and output in the market for SUVs as would an excise tax of $30,000.
A)2,000
B)3,000
C)4,000
D)The answer is impossible to determine.
Free
Multiple Choice
Q 224Q 224
Use the following to answer questions 222-231:
-(Figure: The Market for SUVs)Use Figure: The Market for SUVs..A price _____ of _____ will bring about the same price and output in the market for SUVs as would an excise tax of $30,000.
A)ceiling;$80,000
B)ceiling;$100,000
C)floor;$120,000
D)floor;$140,000
Free
Multiple Choice
Q 225Q 225
Use the following to answer questions 222-231:
-(Figure: The Market for SUVs)Use Figure: The Market for SUVs.If the government imposes a $60,000 tax on SUVs (collected from the producers),consumers will pay _____ of the tax and producers will pay _____.
A)$30,000;$30,000
B)$40,000;$20,000
C)$20,000;$40,000
D)$10,000;$50,000
Free
Multiple Choice
Q 226Q 226
Use the following to answer questions 222-231:
-(Figure: The Market for SUVs)Use Figure: The Market for SUVs.A quota of _____ will bring about the same price and output in the market for yachts as would an excise tax of $60,000.
A)2,000
B)3,000
C)4,000
D)The answer is impossible to determine.
Free
Multiple Choice
Q 227Q 227
Use the following to answer questions 222-231:
-(Figure: The Market for SUVs)Use Figure: The Market for SUVs.A price _____ of _____ will bring the about the same price and output in the market for SUVs as would an excise tax of $60,000.
A)ceiling;$80,000
B)ceiling;$100,000
C)floor;$100,000
D)floor;$160,000
Free
Multiple Choice
Q 228Q 228
Use the following to answer questions 222-231:
-(Figure: The Market for SUVs)Use Figure: The Market for SUVs.If the government imposes a $30,000 tax on SUVs and collects it from the SUV suppliers,the _____ curve will shift _____ by _____.
A)demand;downward;$15,000
B)supply;upward;$15,000
C)supply;upward;$30,000
D)demand;downward;$30,000
Free
Multiple Choice
Q 229Q 229
Use the following to answer questions 222-231:
-(Figure: The Market for SUVs)Use Figure: The Market for SUVs.If the government imposes a $60,000 tax on SUVs (collected from the producers),the price of SUVs will rise to _____ and the government will collect _____.
A)$100,000;$120 million
B)$120,000;$90 million
C)$140,000;$90 million
D)$160,000;$120 million
Free
Multiple Choice
Q 230Q 230
Use the following to answer questions 222-231:
-(Figure: The Market for SUVs)Use Figure: The Market for SUVs.If the government imposes a $30,000 tax on SUVs (collected from the producers),the price of SUVs will rise to _____ and the government will collect _____.
A)$100,000;$120 million
B)$120,000;$90 million
C)$140,000;$90 million
D)$160,000;$120 million
Free
Multiple Choice
Q 231Q 231
Use the following to answer questions 222-231:
-(Figure: The Market for SUVs)Use Figure: The Market for SUVs.If the government imposes a $30,000 tax on SUVs (collected from the producers),consumers will pay _____ of the tax and producers will pay _____.
A)$20,000;$10,000
B)$15,000;$15,000
C)$10,000;$20,000
D)$5,000;$25,000
Free
Multiple Choice
Q 232Q 232
If the government wants to limit sales of a particular good,it may do so by imposing a quota.However,the same reduction in sales may be achieved by an appropriately chosen excise tax.
Free
True False
Q 233Q 233
The price that buyers pay and the price that sellers receive in the presence of an excise tax are unaffected by which of these groups officially pays the tax.
Free
True False
Free
True False
Q 235Q 235
If the government imposes a $500 excise tax on SUVs and the demand curve for SUVs is downward-sloping,suppliers of SUVs will simply raise the price by $500 and consumers will bear the entire burden of the tax.
Free
True False
Q 236Q 236
If demand for a good is perfectly inelastic,then consumers will bear the entire burden of an excise tax imposed on that good.
Free
True False
Q 237Q 237
The FICA tax falls most heavily on workers because the price elasticity of demand for labor is greater than the price elasticity of supply of labor.
Free
True False
Q 238Q 238
Although employers and wage earners each pay 50% of the FICA tax,the tax reduces wages to the extent that the incidence of the tax falls almost entirely on workers.
Free
True False
Q 239Q 239
The deadweight loss of an excise tax arises because the tax prevents some mutually beneficial transactions.
Free
True False
Q 240Q 240
The administrative costs of a tax include the costs incurred by the government in collecting the tax (such as the costs of operating the Internal Revenue Service)but exclude the costs incurred by individuals in paying the tax (such as accountants' fees).
Free
True False
Q 241Q 241
Cigarette taxes have eliminated the wedge between the demand price for cigarettes and the supply price of cigarettes.
Free
True False
Q 242Q 242
If the government imposes a per-unit tax on good Y and the supply of good Y is perfectly inelastic,there will be no deadweight loss due to the tax.
Free
True False
Q 243Q 243
To minimize deadweight loss,excise taxes should be levied on goods with inelastic demand and inelastic supply rather than goods with elastic demand and elastic supply.
Free
True False
Free
True False
Q 245Q 245
The benefits principle says that taxes should be used to benefit the maximum number of people.
Free
True False
Free
True False
Free
True False
Q 248Q 248
Economic policies often involve trade-offs between efficiency and equity.Fortunately,tax policy is an exception because it is easy to find taxes that are both efficient and fair.
Free
True False
Free
True False
Free
True False
Q 251Q 251
A tax system achieves efficiency when it maximizes the amount of tax paid by the wealthiest citizens.
Free
True False
Q 252Q 252
Tax structure refers to what a tax is levied on (e.g. ,income,property,profits),and tax base refers to the base (or lowest)rate of taxation on a particular tax structure.
Free
True False
Q 253Q 253
If the marginal tax rate and the average tax rate are equal for all levels of income,then the tax structure is proportional.
Free
True False
Free
True False
Q 255Q 255
In the United States,poor people and the middle class pay the largest share of income taxes.
Free
True False
Q 256Q 256
Tax cuts authorized between 2000 and 2004 tended to favor the rich,but the federal tax system remains progressive overall.However,taxes at the state and local level are regressive.
Free
True False
Q 257Q 257
Producers in a particular market will bear the greater burden of an excise tax:
A)the more price-elastic the demand is relative to supply.
B)the less price-elastic demand is relative to supply.
C)if demand has the same price elasticity as supply.
D)regardless of the price elasticity of demand or supply.
Free
Multiple Choice
Q 258Q 258
Consumers in a particular market will bear the greater burden of an excise tax:
A)the more price-elastic supply is relative to demand.
B)the less price-elastic supply is relative to demand.
C)if supply has the same price elasticity as demand.
D)regardless of the price elasticity of demand or supply.
Free
Multiple Choice
Q 259Q 259
Suppose price elasticity of demand is relatively inelastic for good X.If the price elasticity of supply for good X is elastic and an excise tax is imposed on good X,who will bear the greater burden of the tax?
A)consumers
B)producers
C)both consumers and producers equally
D)government
Free
Multiple Choice
Q 260Q 260
Suppose the price elasticity of demand is relatively elastic and the price elasticity of supply is relatively inelastic in a specific market.If an excise tax is imposed on this good,who will bear the greater burden of the tax?
A)consumers
B)producers
C)both consumers and producers equally
D)government
Free
Multiple Choice
Q 261Q 261
When the imposition of an excise tax causes the quantity demanded and quantity supplied to decrease relative to the no-tax equilibrium,this will result in:
A)deadweight loss.
B)increases in producer surplus.
C)increases in consumer surplus.
D)increases in both consumer and producer surplus.
Free
Multiple Choice
Q 262Q 262
Price elasticities of demand and supply will NOT play a major role in determining:
A)the ability of policy makers to change consumption of a good via the imposition of an excise tax.
B)the deadweight loss arising from the imposition of an excise tax.
C)the burden of the tax on consumers and producers.
D)administrative costs of imposing an excise tax.
Free
Multiple Choice
Q 263Q 263
Deadweight losses arising from an excise tax are greatest when demand:
A)and supply are relatively inelastic.
B)is relatively inelastic and supply is relatively elastic
C)is relatively elastic and supply is relatively inelastic.
D)and supply are relatively elastic.
Free
Multiple Choice
Q 264Q 264
The ability-to-pay principle regarding taxes suggests that:
A)the efficiency of a tax is the key feature in designing it.
B)those who can afford it should bear the greater burden of the tax.
C)those who benefit most from the tax should bear the greater burden of the tax.
D)higher-income individuals should pay the same amount as lower-income individuals.
Free
Multiple Choice
Q 265Q 265
The benefits principle of taxation means individuals pay according to:
A)whether and how much they use a good or service.
B)benefits gained by society as a whole.
C)benefits to government from having taxpayers.
D)ability to pay.
Free
Multiple Choice
Q 266Q 266
Use the following to answer questions 276-279:
-(Table: Three Tax Structure Proposals)Use Table: Three Tax Structure Proposals.A regressive tax structure can be found in:
A)proposal 1.
B)proposal 2.
C)proposal 3.
D)all of the proposals.
Free
Multiple Choice
Q 267Q 267
Use the following to answer questions 276-279:
-(Table: Three Tax Structure Proposals)Use Table: Three Tax Structure Proposals.Policy makers interested in implementing a progressive tax structure would suggest using:
A)proposal 1.
B)proposal 2.
C)proposal 3.
D)all of the proposals,since all are progressive.
Free
Multiple Choice
Q 268Q 268
Use the following to answer questions 276-279:
-(Table: Three Tax Structure Proposals)Use Table: Three Tax Structure Proposals.If one wished to use a proportional or flat tax structure,one should use proposal _____,in which the percentage of income taxed is _____%.
A)1;20
B)2;10
C)3;20
D)2;20
Free
Multiple Choice
Q 269Q 269
Use the following to answer questions 276-279:
-(Table: Three Tax Structure Proposals)Use Table: Three Tax Structure Proposals.What percentage of income does an individual pay in taxes under proposal 3 if that individual's pretax income is $100,000?
A)2%
B)10%
C)20%
D)25%
Free
Multiple Choice
Q 270Q 270
A regressive tax structure is one in which taxes:
A)rise less than in proportion to income.
B)rise more than in proportion to income.
C)rise exactly in proportion to income.
D)stay the same regardless of income changes.
Free
Multiple Choice
Q 271Q 271
The percentage of an increase in income that is taxed is:
A)the marginal rate.
B)a regressive tax.
C)a flat tax.
D)after tax.
Free
Multiple Choice
Q 272Q 272
In the United States,taxes tend to be regressive at:
A)federal,state,and local levels.
B)federal and state levels.
C)state and local levels.
D)no levels of government.
Free
Multiple Choice
Q 273Q 273
A cost(s)NOT associated with the imposition of a tax is/are:
A)deadweight loss.
B)administrative cost.
C)revenues.
D)equilibrium pricing.
Free
Multiple Choice
Q 274Q 274
Use the following to answer questions 284-290:
-(Figure: A Market with a Tax)Use Figure: A Market with a Tax.The excise tax imposed on this good is equal to:
A)P1 - P2.
B)P1 - P3
C)P2 - P3.
D)P1 - P5.
Free
Multiple Choice
Q 275Q 275
Use the following to answer questions 284-290:
-(Figure: A Market with a Tax)Use Figure: A Market with a Tax.Before the tax is imposed,consumer surplus is equal to the areas:
A)A + B + C + D + E.
B)A + B + C.
C)A + B + C + D + E + F.
D)D + E + F.
Free
Multiple Choice
Q 276Q 276
Use the following to answer questions 284-290:
-(Figure: A Market with a Tax)Use Figure: A Market with a Tax.Before the tax,producer surplus is equal to the areas:
A)A + B + C + D.
B)D + E + F + G.
C)A + B + C + D + E + F.
D)A + B + C.
Free
Multiple Choice
Q 277Q 277
Use the following to answer questions 284-290:
-(Figure: A Market with a Tax)Use Figure: A Market with a Tax.The tax revenue collected by the government is equal to the area:
A)(P1 - P3)Q1.
B)(P1 - P5)Q2.
C)(P2 - P3)Q1.
D)(P1 - P2)Q2.
Free
Multiple Choice
Q 278Q 278
Use the following to answer questions 284-290:
-(Figure: A Market with a Tax)Use Figure: A Market with a Tax.The transfer of consumer surplus to the government is equal to the area:
A)B.
B)C.
C)D.
D)F.
Free
Multiple Choice
Q 279Q 279
Use the following to answer questions 284-290:
-(Figure: A Market with a Tax)Use Figure: A Market with a Tax.The deadweight loss arising from the imposition of this tax is equal to the areas:
A)B + D
B)D + E.
C)B + C.
D)C + F.
Free
Multiple Choice
Q 280Q 280
Use the following to answer questions 284-290:
-(Figure: A Market with a Tax)Use Figure: A Market with a Tax.The efficiency loss resulting from this tax is:
A)(P1 - P3)Q2.
B)(P1 - P2)Q1
C)0.5(P1 - P3)(Q2 - Q1).
D)0.5(P1 - P3)Q1.
Free
Multiple Choice
Q 281Q 281
Use the following to answer questions 291-296:
-(Scenario: The Market for Good X)Use Scenario: The Market for Good X.If a $1 per unit tax is imposed on this good,the new supply curve will be:
A)P = 0.33Q + 1.
B)P = 50 - 0.5Q
C)P = 0.33Q - 1.
D)P = 0.33Q + 1 + 50 - 0.5Q.
Free
Multiple Choice
Q 282Q 282
Use the following to answer questions 291-296:
-(Scenario: The Market for Good X)Use Scenario: The Market for Good X.If a $1 per unit tax is imposed,the price of good X will increase by (round all calculations to two decimal places):
A)$20.00.
B)$0.60.
C)$1.00.
D)$1.50.
Free
Multiple Choice
Q 283Q 283
Use the following to answer questions 291-296:
-(Scenario: The Market for Good X)Use Scenario: The Market for Good X.If a $1 per unit tax is imposed,the deadweight loss associated with the tax will be equal to (round all calculations to two decimal places):
A)$1.00.
B)$20.00.
C)$0.50.
D)$0.60.
Free
Multiple Choice
Q 284Q 284
Use the following to answer questions 291-296:
-(Scenario: The Market for Good X)Use Scenario: The Market for Good X.The tax revenue collected by government from a $1 per unit tax will be (round all calculations to two decimal places):
A)$1.00.
B)$59.04.
C)$60.00.
D)$60.50.
Free
Multiple Choice
Q 285Q 285
Use the following to answer questions 291-296:
-(Scenario: The Market for Good X)Use Scenario: The Market for Good X.The per-unit tax incidence on producers is equal to (round all calculations to two decimal places):
A)$1.00.
B)$0.40.
C)$58.80.
D)$60.00.
Free
Multiple Choice
Q 286Q 286
Use the following to answer questions 291-296:
-(Scenario: The Market for Good X)Use Scenario: The Market for Good X.The per-unit tax incidence on consumers is equal to (round all calculations to two decimal places):
A)$1.00.
B)$0.60.
C)$58.80.
D)$60.00.
Free
Multiple Choice