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73. Refer to Figure 6-18. The price that buyers pay after the tax is imposed is
a.
$8.
b.
$10.
c.
$16.
d.
$24.
74. Refer to Figure 6-18. The effective price that sellers receive after the tax is imposed is
a.
$6.
b.
$10.
c.
$16.
d.
$24.
75. Refer to Figure 6-18. The amount of the tax per unit is
a.
$6.
b.
$8.
c.
$14.
d.
$18.
76. Refer to Figure 6-18. The per-unit burden of the tax on buyers is
a.
$6.
b.
$8.
c.
$14.
d.
$24.
77. Refer to Figure 6-18. The per-unit burden of the tax on sellers is
a.
$6.
b.
$8.
c.
$10.
d.
$14.
Figure 6-19
78. Refer to Figure 6-19. Suppose a tax of $2 per unit is imposed on this market. What will be the new equilibrium
quantity in this market?
a.
less than 50 units
b.
50 units
c.
between 50 units and 100 units
d.
greater than 100 units
79. Refer to Figure 6-19. Suppose a tax of $2 per unit is imposed on this market. How much will sellers receive per unit
after the tax is imposed?
a.
$3
b.
between $3 and $5
c.
between $5 and $7
d.
$7
80. Refer to Figure 6-19. Suppose a tax of $2 per unit is imposed on this market. How much will buyers pay per unit
after the tax is imposed?
a.
$3
b.
between $3 and $5
c.
between $5 and $7
d.
$7
81. Refer to Figure 6-19. Suppose a tax of $2 per unit is imposed on this market. Which of the following is correct?
a.
One-fourth of the burden of the tax will fall on buyers, and three-fourths of the burden of the tax will fall on
sellers.
b.
One-third of the burden of the tax will fall on buyers, and two-thirds of the burden of the tax will fall on
sellers.
c.
One-half of the burden of the tax will fall on buyers, and one-half of the burden of the tax will fall on sellers.
d.
Two-thirds of the burden of the tax will fall on buyers, and one-third of the burden of the tax will fall on
sellers.
Figure 6-20
82. Refer to Figure 6-20. Suppose a tax of $5 per unit is imposed on this market. What will be the new equilibrium
quantity in this market?
a.
less than 25 units
b.
25 units
c.
between 25 units and 50 units
d.
greater than 50 units
83. Refer to Figure 6-20. Suppose a tax of $5 per unit is imposed on this market. How much will sellers receive per unit
after the tax is imposed?
a.
$5
b.
between $5 and $10
c.
between $10 and $14
d.
$14
84. Refer to Figure 6-20. Suppose a tax of $5 per unit is imposed on this market. How much will buyers pay per unit
after the tax is imposed?
a.
$5
b.
between $5 and $10
c.
between $10 and $14
d.
$14
85. Refer to Figure 6-20. Suppose a tax of $5 per unit is imposed on this market. Which of the following is correct?
a.
Buyers and sellers will share the burden of the tax equally.
b.
Buyers will bear more of the burden of the tax than sellers will.
c.
Sellers will bear more of the burden of the tax than buyers will.
d.
Any of the above is possible.
Figure 6-21
86. Refer to Figure 6-21. What is the amount of the tax per unit?
a.
$1
b.
$2
c.
$3
d.
$4
87. Refer to Figure 6-21. The price that buyers pay after the tax is imposed is
a.
$8.00.
b.
$9.00.
c.
$10.50.
d.
$12.00.
88. Refer to Figure 6-21. Acme, Inc. is a seller of the good. Acme sells a unit of the good to a buyer and then pays the tax
on that unit to the government. Acme is left with how much money?
a.
$8.00
b.
$9.00
c.
$10.50
d.
$12.00
89. Refer to Figure 6-21. How is the burden of the tax shared between buyers and sellers? Buyers bear
a.
three-fourths of the burden, and sellers bear one-fourth of the burden.
b.
two-thirds of the burden, and sellers bear one-third of the burden.
c.
one-half of the burden, and sellers bear one-half of the burden.
d.
one-fourth of the burden, and sellers bear three-fourths of the burden.
90. Refer to Figure 6-21. In the after-tax equilibrium, how much revenue does the government collect from the tax on
this good?
a.
$210
b.
$345
c.
$420
d.
$480
91. Refer to Figure 6-21. Suppose buyers, rather than sellers, were required to pay this tax (in the same amount per unit
as shown in the graph). Relative to the tax on sellers, the tax on buyers would result in
a.
buyers bearing a larger share of the tax burden.
b.
sellers bearing a smaller share of the tax burden.
c.
the same amount of tax revenue for the government.
d.
Both a) and b) are correct.
Figure 6-22
92. Refer to Figure 6-22. The equilibrium price in the market before the tax is imposed is
a.
$3.50.
b.
$5.00.
c.
$2.00.
d.
$1.50.
93. Refer to Figure 6-22. As the figure is drawn, who sends the tax payment to the government?
a.
The buyers send the tax payment.
b.
The sellers send the tax payment.
c.
A portion of the tax payment is sent by the buyers, and the remaining portion is sent by the sellers.
d.
The question of who sends the tax payment cannot be determined from the graph.
94. Refer to Figure 6-22. The price paid by buyers after the tax is imposed is
a.
$3.00.
b.
$3.50.
c.
$5.00.
d.
$6.00.
95. Refer to Figure 6-22. The effective price sellers receive after the tax is imposed is
a.
$2.00.
b.
$3.50.
c.
$5.00.
d.
$3.00.
96. Refer to Figure 6-22. The amount of the tax per unit is
a.
$2.00.
b.
$1.50.
c.
$3.00.
d.
$0.50.
97. Refer to Figure 6-22. Buyers pay how much of the tax per unit?
a.
$0.50.
b.
$1.50.
c.
$3.00.
d.
$5.00.
98. Refer to Figure 6-22. Sellers pay how much of the tax per unit?
a.
$0.50.
b.
$1.50.
c.
$3.00.
d.
$5.00.
99. Refer to Figure 6-22. Suppose the same supply and demand curves apply, and a tax of the same amount per unit as
shown here is imposed. Now, however, the buyers of the good, rather than the sellers, are required to pay the tax to the
government. After the buyers pay the tax, relative to the case depicted in the figure, the burden on buyers will be
a.
larger, and the burden on sellers will be smaller.
b.
smaller, and the burden on sellers will be larger.
c.
the same, and the burden on sellers will be the same.
d.
The relative burdens in the two cases cannot be determined without further information.
100. Refer to Figure 6-22. How much tax revenue does this tax generate for the government?
a.
$80.
b.
$60.
c.
$15.
d.
$45.
Figure 6-23
101. Refer to Figure 6-23. The price paid by buyers after the tax is imposed is
a.
$3.
b.
$4.
c.
$5.
d.
$6.
102. Refer to Figure 6-23. The effective price received by sellers after the tax is imposed is
a.
$3.
b.
$4.
c.
$5.
d.
$6.
103. Refer to Figure 6-23. For every unit of the good that is sold, sellers are required to send
a.
one dollar to the government, and buyers are required to send two dollars to the government.
b.
two dollars to the government, and buyers are required to send one dollar to the government.
c.
three dollars to the government, and buyers are required to send nothing to the government.
d.
nothing to the government, and buyers are required to send two dollars to the government.
104. Refer to Figure 6-23. Which of the following is correct?
a.
The entire burden of the tax falls on sellers, and none of the burden of the tax falls on buyers.
b.
One-third of the burden of the tax falls on buyers, and two-thirds of the burden of the tax falls on sellers.
c.
One-half of the burden of the tax falls on buyers, and one-half of the burden of the tax falls on sellers.
d.
Two-thirds of the burden of the tax falls on buyers, and one-third of the burden of the tax falls on sellers.
105. Refer to Figure 6-23. How much tax revenue does this tax produce for the government?
a.
$18.
b.
$30.
c.
$6.
d.
$36.
106. If a tax is levied on the buyers of dog food, then
a.
buyers will bear the entire burden of the tax.
b.
sellers will bear the entire burden of the tax.
c.
buyers and sellers will share the burden of the tax.
d.
the government will bear the entire burden of the tax.
107. Suppose the government imposes a $40 tax on the buyers of refrigerators. The tax would
a.
shift the demand curve downward by less than $40.
b.
raise the equilibrium price by $40.
c.
create a $20 tax burden each for buyers and sellers.
d.
discourage market activity.
Figure 6-24
108. Refer to Figure 6-24. Which of the following statements is correct?
a.
The amount of the tax per unit is $6.
b.
The tax leaves the size of the market unchanged.
c.
The tax is levied on buyers of the good, rather than on sellers.
d.
All of the above are correct.
109. Refer to Figure 6-24. What is the amount of the tax per unit?
a.
$8
b.
$6
c.
$4
d.
$2
110. Refer to Figure 6-24. The price paid by buyers after the tax is imposed is
a.
$24.
b.
$21.
c.
$18.
d.
$16.
111. Refer to Figure 6-24. The per-unit burden of the tax on buyers of the good is
a.
$2.
b.
$4.
c.
$6.
d.
$8.
112. Refer to Figure 6-24. Andrew is a buyer of the good. Taking the tax into account, how much does Andrew
effectively pay to acquire one unit of the good?
a.
$16
b.
$18
c.
$24
d.
$26
113. Refer to Figure 6-24. Suppose sellers, rather than buyers, were required to pay this tax (in the same amount per unit
as shown in the graph). Relative to the tax on buyers, the tax on sellers would result in
a.
buyers bearing the same share of the tax burden.
b.
sellers bearing the same share of the tax burden.
c.
the same amount of tax revenue for the government.
d.
All of the above are correct.
114. Refer to Figure 6-24. In the after-tax equilibrium, government collects
a.
$1,440 in tax revenue; of this amount, $960 represents a burden on buyers and $480 represents a burden on
sellers.
b.
$1,440 in tax revenue; of this amount, $720 represents a burden on buyers and $720 represents a burden on
sellers.
c.
$1,680 in tax revenue; of this amount, $1,260 represents a burden on buyers and $420 represents a burden on
sellers.
d.
$1,680 in tax revenue; of this amount, $840 represents a burden on buyers and $840 represents a burden on
sellers.
Figure 6-25
115. Refer to Figure 6-25. The equilibrium price in the market before the tax is imposed is
a.
$1.
b.
$2.
c.
$5.
d.
$6.
116. Refer to Figure 6-25. As the figure is drawn, who sends the tax payment to the government?
a.
The buyers send the tax payment.
b.
The sellers send the tax payment.
c.
A portion of the tax payment is sent by the buyers, and the remaining portion is sent by the sellers.
d.
The question of who sends the tax payment cannot be determined from the figure.
117. Refer to Figure 6-25. The price that buyers pay after the tax is imposed is
a.
$5.
b.
$6.
c.
$7.
d.
$8.
118. Refer to Figure 6-25. The effective price that sellers receive after the tax is imposed is
a.
$5.
b.
$6.
c.
$7.
d.
$8.
119. Refer to Figure 6-25. The amount of the tax per unit is
a.
$1.
b.
$1.50.
c.
$2.
d.
$3.
120. Refer to Figure 6-25. The burden of the tax on buyers is
a.
$1 per unit.
b.
$1.50 per unit.
c.
$2 per unit.
d.
$3 per unit.
121. Refer to Figure 6-25. The burden of the tax on sellers is
a.
$1 per unit.
b.
$1.50 per unit.
c.
$2 per unit.
d.
$3 per unit.
122. Refer to Figure 6-25. Suppose the same supply and demand curves apply, and a tax of the same amount per unit as
shown here is imposed. Now, however, the sellers of the good, rather than the buyers, are required to pay the tax to the
government. After the sellers are required to pay the tax, relative to the case depicted in the graph, the burden on buyers
will be
a.
larger, and the burden on sellers will be smaller.
b.
smaller, and the burden on sellers will be larger.
c.
the same, and the burden on sellers will be the same.
d.
The relative burdens in the two cases cannot be determined without further information.
123. Refer to Figure 6-25. How much tax revenue does this tax generate for the government?
a.
$150
b.
$180
c.
$250
Figure 6-26
124. Refer to Figure 6-26. The price paid by buyers after the tax is imposed is
a.
$8.
b.
$16.
c.
$14.
d.
$12.
125. Refer to Figure 6-26. The effective price received by sellers after the tax is imposed is
a.
$8.
b.
$16.
c.
$14.
d.
$12.
126. Refer to Figure 6-26. The amount of the tax per unit is
a.
$4.
b.
$8.
c.
$14.
d.
$10.
127. Refer to Figure 6-26. The per-unit burden of the tax is
a.
$2 for buyers and $6 for sellers.
b.
$4 for buyers and $4 for sellers.
c.
$6 for buyers and $2 for sellers.
d.
$8 for buyers and $0 for sellers.
128. Refer to Figure 6-26. How much tax revenue does this tax produce for the government?
a.
$480
b.
$640
c.
$360
d.
$120
Figure 6-27
This figure shows the market demand and market supply curves for good Z.
129. Refer to Figure 6-27. Suppose a tax of $3 per unit is imposed on this market. What will be the new equilibrium
quantity in this market?
a.
less than 8 units
b.
8 units
c.
between 8 units and 10 units
d.
greater than 10 units
130. Refer to Figure 6-27. Suppose a tax of $3 per unit is imposed on this market. How much will sellers receive per unit
after the tax is imposed?
a.
$16
b.
between $16 and $20
c.
between $20 and $22
d.
$22
