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# Economics Study Set 8

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## Quiz 7 : Taxation and Government Intervention

Unlike excise taxes, price ceilings create no deadweight loss.
Free
True False

False

Total producer surplus is measured as the area:
Free
Multiple Choice

D

If the demand for Insulin is highly inelastic, the burden of a tax on Insulin will be borne almost entirely by sellers.
Free
True False

False

Refer to the graph shown. In equilibrium, consumer surplus is equal to:
Multiple Choice
Refer to the graph shown. In equilibrium, total surplus is equal to:
Multiple Choice
If a tax is legally required to be paid by sellers, sellers typically bear the full burden of the tax.
True False
Refer to the graph shown. In equilibrium, producer surplus is equal to:
Multiple Choice
The distance between the supply curve and the price the producer receives for a product for a given quantity supplied is referred to as:
Multiple Choice
The total cost of taxation to consumers and producers generally exceeds the amount of tax revenue collected by government.
True False
If the government's goal is to alter people's behavior through taxation, taxing goods with relatively elastic demand and supply would be most effective.
True False
When the market is in equilibrium, total surplus is maximized.
True False
Total consumer surplus is measured as the area:
Multiple Choice
The military draft can be seen as an implicit tax on potential recruits and a subsidy to those who demand defense services.
True False
An excise tax on alcohol causes the supply of alcohol to decrease and the price of alcohol to decrease.
True False
A price ceiling is, in essence, an implicit tax on producers and an implicit subsidy to consumers.
True False
The distance between the demand curve and the price the consumer has to pay for a product (given quantity demanded)is referred to as:
Multiple Choice
If the minimum that the Smith family would be willing to sell their house for is $185,000, but they in fact sell it for$210,000, they will receive: