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Figure: The Gasoline Market
Reference: Ref 7-17
(Figure: The Gasoline Market) Look at the figure The Gasoline Market. An excise
tax has been levied on each gallon of gasoline supplied by producers, shifting the
supply curve upward. What is the tax rate?
$0.50
255. Multiple Choice: Figure: The Gasoline Market Reference...
Question
Points: 0
Figure: The Gasoline Market
Reference: Ref 7-17
(Figure: The Gasoline Market) Look at the figure The Gasoline Market. 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:
Answer $1.50.
256. Multiple Choice: Figure: The Gasoline Market Reference...
Question
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Figure: The Gasoline Market
Reference: Ref 7-17
(Figure: The Gasoline Market) Look at the figure The Gasoline Market. 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:
Answer $1.50.
257. Multiple Choice: Figure: The Market for Lattes Referen...
Question
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Figure: The Market for Lattes
Reference: Ref 7-18
(Figure: The Market for Lattes) If an excise tax of $1.50 is assessed on each latte,
government revenue will be:
Answer $400
258. Multiple Choice: Figure: The Market for Lattes Referen...
Question
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Figure: The Market for Lattes
Reference: Ref 7-18
(Figure: The Market for Lattes) If an excise tax of $2.25 is assessed on each latte,
government revenue will be:
Answer $225
259. Multiple Choice: Figure: The Market for Lattes Referen...
Question
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Figure: The Market for Lattes
Reference: Ref 7-18
(Figure: The Market for Lattes) If the excise tax on lattes increases from $1.50 per
latte to $2.25 per latte, government revenue will _________ by ________ .
increase; $225
260. Multiple Choice: Producers in a particular market will...
Question Producers in a particular market will bear the greater burden of an excise tax:
regardless of the price elasticity of demand or supply.
261. Multiple Choice: Consumers in a particular market will...
Question Consumers in a particular market will bear the greater burden of an excise tax:
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262. Multiple Choice: Suppose price elasticity of demand is...
Question 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?
263. Multiple Choice: Suppose the price elasticity of deman...
Question 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?
264. Multiple Choice: When the imposition of an excise tax ...
Question When the imposition of an excise tax causes the quantity demanded and quantity
supplied to decrease, this will result in:
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265. Multiple Choice: Price elasticities of demand and supp...
Question Price elasticities of demand and supply will not play a major role in determining
which of the following?
Answer the ability of policy makers to change consumption of a good via the imposition
of an excise tax
266. Multiple Choice: Deadweight losses arising from the pr...
Question Deadweight losses arising from the presence of an excise tax are greatest when
demand:
Answer and supply are relatively inelastic.
267. Multiple Choice: The ability-to-pay principle regardin...
Question The ability-to-pay principle regarding taxes suggests that:
Answer the efficiency of a tax is the key feature in designing a tax.
268. Multiple Choice: The benefits principle of tax payment...
Question The benefits principle of tax payments means individuals pay based on the:
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269. Multiple Choice: Reference: Ref 7-19 (Table: Three Ta...
Question
Reference: Ref 7-19
(Table: Three Tax Structure Proposals) Look at the table Three Tax Structure
Proposals. A regressive tax structure can be found in:
Answer proposal 1.
270. Multiple Choice: Reference: Ref 7-19 (Table: Three Ta...
Question
Reference: Ref 7-19
(Table: Three Tax Structure Proposals) Look at the table Three Tax Structure
Proposals. Policy makers interested in implementing a progressive tax structure would
suggest using:
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271. Multiple Choice: Reference: Ref 7-19 (Table: Three Ta...
Question
Reference: Ref 7-19
(Table: Three Tax Structure Proposals) Look at the 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 ________.
272. Multiple Choice: Reference: Ref 7-19 (Table: Three Ta...
Question
Reference: Ref 7-19
(Table: Three Tax Structure Proposals) Look at the table Three Tax Structure
Proposals. What percentage of income does an individual pay in taxes under proposal 3
if that individual's pre-tax income is $100,000?
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273. Multiple Choice: A regressive tax structure is one in ...
Question A regressive tax structure is one in which taxes:
274. Multiple Choice: The percentage of an increase in inco...
Question The percentage of an increase in income that is taxed is:
275. Multiple Choice: In the United States, taxes tend to b...
Question In the United States, taxes tend to be regressive at:
Answer federal, state, and local levels.
276. Multiple Choice: All of the following are costs associ...
Question All of the following are costs associated with the imposition of a tax except:
Answer deadweight loss.
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