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Tests, Surveys, and Pools Tests
Test Canvas : Self-Test Quiz - Chapter 07
Microeconom ics, 3e
Test Canvas: Self-Test Quiz - Chapter 07
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Total Questions 20
Total Points 20
1. Multiple Choice: The incidence of a tax is the:
Question The incidence of a tax is the:
Answer
amount of the revenue the government collects.
2. Multiple Choice: What is meant by the "deadweight loss...
Question What is meant by the "deadweight loss caused by a tax?
Answer the shortage that results
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Points: 1
Points: 1
3. Multiple Choice: Suppose that the rate for a hotel roo...
Question Suppose that the rate for a hotel room is $75 before the imposition of an $8 excise
tax. With the tax, the rate rises to $80. What is the consumer's burden of the tax?
Answer
$3
4. Multiple Choice: Suppose that the price of overnight p...
Question Suppose that the price of overnight package delivery service is $18 before a $5
excise tax is imposed. With the tax, the price rises to $20. What is the producer's
burden of the tax?
Answer
$2
Points: 1
Points: 1
5. Multiple Choice: Under what circumstances does the bur...
Question Under what circumstances does the burden of an excise tax fall mainly on
producers?
6. Multiple Choice: When the price elasticity of demand e...
Question When the price elasticity of demand exceeds the price elasticity of supply, the
burden of an excise tax falls:
7. Multiple Choice: In 1990, the U.S. government imposed ...
Question
Points: 1
Points: 1
Points: 1
8. Multiple Choice: The amount of the deadweight loss res...
Question The amount of the deadweight loss resulting from an excise tax is:
Points: 1
9. Multiple Choice: Which of the following statements is ...
Question Which of the following statements is true?
10. Multiple Choice: Some proponents of an excise tax on c...
Question Some proponents of an excise tax on cigarettes argue that it will discourage
smoking. Others argue that it will collect revenue for the government. Given the
economic model of supply and demand, which of the following is true?
11. Multiple Choice: An excise tax imposed on chocolate wo...
Points: 1
Points: 1
Points: 1
Question An excise tax imposed on chocolate would create a deadweight loss because it
will:
12. Multiple Choice: Which of the following is not a predi...
Question Which of the following is not a predictable result from imposition of an excise tax?
Answer
The quantity demanded decreases.
13. Multiple Choice: Under the _____________ tax system, p...
Question Under the _____________ tax system, professional athletes pay more tax than
janitors do.
Answer benefits principle
Points: 1
Points: 1
14. Multiple Choice: The ability-to-pay principle of tax f...
Question The ability-to-pay principle of tax fairness says that:
Answer
those who benefit from public spending should bear the burden of the tax that
pays for such spending.
15. Multiple Choice: Under the ____________ tax, incentive...
Question Under the ____________ tax, incentives are not distorted, and taxes are
___________.
16. Multiple Choice: Suppose after an increase in excise t...
Points: 1
Points: 1
Points: 1
Question Suppose after an increase in excise tax on cigarettes, the buyer now pays $10.80
per pack. The supply price per pack (the price received by producers) is $5.30.
What is the amount of tax?
Answer
$16.10
17. Multiple Choice: In a progressive tax system:
Question In a progressive tax system:
Answer
those who receive the most benefits pay the highest taxes.
18. Multiple Choice: A progressive tax is one in which:
Question A progressive tax is one in which:
Points: 1
Points: 1
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19. Multiple Choice: A regressive tax is one in which:
Question A regressive tax is one in which:
20. Multiple Choice: The Earned Income Tax Credit is a typ...
Question The Earned Income Tax Credit is a type of:
Answer
in-kind transfer.
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Points: 1
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