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277. Multiple Choice: Figure: A Market with a Tax Reference...
Question Figure: A Market with a Tax
Reference: Ref 7-20
(Figure: A Market with a Tax) Look at the figure A Market with a Tax. The excise
tax imposed on this good is equal to:
Answer P1 – P2.
278. Multiple Choice: Figure: A Market with a Tax Reference...
Question
Points: 0
Points: 0
Figure: A Market with a Tax
Reference: Ref 7-20
(Figure: A Market with a Tax) Look at the figure A Market with a Tax. Before the
tax is imposed, consumer surplus is equal to the areas:
Answer A + B + C + D + E.
279. Multiple Choice: Figure: A Market with a Tax Reference...
Question Figure: A Market with a Tax
Reference: Ref 7-20
(Figure: A Market with a Tax) Look at the figure A Market with a Tax. Before the
tax, producer surplus is equal to the areas:
Answer A + B + C + D.
Points: 0
280. Multiple Choice: Figure: A Market with a Tax Reference...
Question Figure: A Market with a Tax
Reference: Ref 7-20
(Figure: A Market with a Tax) Look at the figure A Market with a Tax. The tax
revenue collected by the government is equal to the area:
281. Multiple Choice: Figure: A Market with a Tax Reference...
Question
Points: 0
Points: 0
Figure: A Market with a Tax
Reference: Ref 7-20
(Figure: A Market with a Tax) Look at the figure A Market with a Tax. The transfer
of consumer surplus to the government is equal to:
282. Multiple Choice: Figure: A Market with a Tax Reference...
Question Figure: A Market with a Tax
Reference: Ref 7-20
(Figure: A Market with a Tax) Look at the figure A Market with a Tax. The
deadweight loss arising from the imposition of this tax is equal to the areas:
Answer B, D.
Points: 0
283. Multiple Choice: Figure: A Market with a Tax Reference...
Question Figure: A Market with a Tax
Reference: Ref 7-20
(Figure: A Market with a Tax) Look at the figure A Market with a Tax. The efficiency
loss resulting from this tax is:
Answer (P1 – P3)Q2.
284. Multiple Choice: Scenario: The Market for Good X:The m...
Question
Points: 0
Points: 0
Scenario: The Market for Good X:
The market for good X can be depicted with the following demand and supply
equations:
Demand: P = 50 – 1/2Q
Supply: P = 1/3Q
where P is price per unit and Q represents quantity in units. Policy makers plan on
imposing a $1 per unit tax on this good.
Reference: Ref 7-21
(Scenario: The Market for Good X) Look at the scenario The Market for Good X. If a
$1 per unit tax is imposed on this good, the new supply curve will be:
285. Multiple Choice: Scenario: The Market for Good X:The m...
Question Scenario: The Market for Good X:
The market for good X can be depicted with the following demand and supply
equations:
Demand: P = 50 – 1/2Q
Supply: P = 1/3Q
where P is price per unit and Q represents quantity in units. Policy makers plan on
imposing a $1 per unit tax on this good.
Reference: Ref 7-21
(Scenario: The Market for Good X) Look at the scenario The Market for Good X. If a
$1 per unit tax is imposed, the price of good X will increase by:
Answer $20.
286. Multiple Choice: Scenario: The Market for Good X:The m...
Question
Points: 0
Points: 0
Scenario: The Market for Good X:
The market for good X can be depicted with the following demand and supply
equations:
Demand: P = 50 – 1/2Q
Supply: P = 1/3Q
where P is price per unit and Q represents quantity in units. Policy makers plan on
imposing a $1 per unit tax on this good.
Reference: Ref 7-21
(Scenario: The Market for Good X) Look at the 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:
287. Multiple Choice: Scenario: The Market for Good X:The m...
Question Scenario: The Market for Good X:
The market for good X can be depicted with the following demand and supply
equations:
Demand: P = 50 – 1/2Q
Supply: P = 1/3Q
where P is price per unit and Q represents quantity in units. Policy makers plan on
imposing a $1 per unit tax on this good.
Reference: Ref 7-21
(Scenario: The Market for Good X) Look at the scenario The Market for Good X. The
tax revenue collected by government from a $1 per unit tax will be:
Answer $1.00.
288. Multiple Choice: Scenario: The Market for Good X:The m...
Question
Points: 0
Points: 0
Scenario: The Market for Good X:
The market for good X can be depicted with the following demand and supply
equations:
Demand: P = 50 – 1/2Q
Supply: P = 1/3Q
where P is price per unit and Q represents quantity in units. Policy makers plan on
imposing a $1 per unit tax on this good.
Reference: Ref 7-21
(Scenario: The Market for Good X) Look at the scenario The Market for Good X. The
per-unit tax incidence on producers is equal to:
Answer $1.00.
289. Multiple Choice: Scenario: The Market for Good X:The m...
Question Scenario: The Market for Good X:
The market for good X can be depicted with the following demand and supply
equations:
Demand: P = 50 – 1/2Q
Supply: P = 1/3Q
where P is price per unit and Q represents quantity in units. Policy makers plan on
imposing a $1 per unit tax on this good.
Reference: Ref 7-21
(Scenario: The Market for Good X) Look at the scenario The Market for Good X. The
per-unit tax incidence on consumers is equal to:
Answer $1.00.
290. Essay: Explain how an excise tax levied on s...
Question Explain how an excise tax levied on suppliers affects the supply curve.
291. Essay: A politician says that a tax on good ...
Points: 0
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Question A politician says that a tax on good X will not increase the price of good X paid by
consumers. Is there any way that this can be an accurate statement?
292. Essay: Under what supply and demand conditio...
Question Under what supply and demand conditions would an excise tax create a large
incidence of the tax on suppliers and a small incidence of the tax on consumers?
Explain how this works.
293. Essay: What is the difference between a tax ...
Question What is the difference between a tax rate and tax revenue?
294. Essay: How is it that a higher tax rate can ...
Question How is it that a higher tax rate can increase tax revenue in some cases, but a
higher tax rate can decrease tax revenue in other cases? Relate this to the price
elasticity of demand.
295. Essay: How does an excise tax create a cost ...
Question How does an excise tax create a cost to society?
296. Essay: Are there any supply and demand condi...
Question Are there any supply and demand conditions that would create zero deadweight
loss when an excise tax is imposed?
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297. Essay: Some highways and bridges require dri...
Question Some highways and bridges require drivers to pay a toll to use that infrastructure.
Which principle of tax fairness does this describe?
298. Essay: Periodically automobile drivers need ...
Question Periodically automobile drivers need to go to their state department of motor
vehicles to relicense their cars and trucks. The licensing fees that drivers pay to
their state governments are a form of a tax. Design a licensing tax that is
regressive and one that is progressive.
299. Essay: Suppose the supply of tobacco is elas...
Question Suppose the supply of tobacco is elastic and the demand for tobacco is inelastic. If
an excise tax is levied on the suppliers of tobacco, will the incidence fall mostly on
consumers or mostly on producers? Will there be a large amount or small amount
of deadweight loss? Will tax revenue from the tobacco tax fall or rise?
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