FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 8: Application: The Costs of Taxation

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 21

True/False

Review LaterAdd Note

Review Later

A tax on a good causes the size of the market to shrink.

A) True
B) False

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

Suppose a tax of $4 per unit is imposed on a good,and the tax causes the equilibrium quantity of the good to decrease from 2,000 units to 1,700 units.The tax decreases consumer surplus by $3,000 and decreases producer surplus by $4,400.The deadweight loss of the tax is

A) $200.
B) $400.
C) $600.
D) $1,200.

E) A) and B)
F) A) and C)

Correct Answer

verified

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

The benefit that government receives from a tax is measured by

Assume that for good X the supply curve for a good is a typical,upward-sloping straight line,and the demand curve is a typical downward-sloping straight line.If the good is taxed,and the tax is doubled,the

Figure 8-1 -Refer to Figure 8-1.Suppose the government imposes a tax of P' - P'''.Total surplus before the tax is measured by the area

The idea that tax cuts would increase the quantity of labor supplied,thus increasing tax revenue,became know as supply-side economics.

Consider a good to which a per-unit tax applies.The size of the deadweight that results from the tax is smaller,the

Figure 8-6 The vertical distance between points A and B represents a tax in the market. -Refer to Figure 8-6.When the tax is placed on this good,the quantity sold

Figure 8-6 The vertical distance between points A and B represents a tax in the market. -Refer to Figure 8-6.When the tax is imposed in this market,sellers effectively pay what amount of the $10 tax?

The size of a tax and the deadweight loss that results from the tax are

Figure 8-1 -Refer to Figure 8-1.Suppose the government imposes a tax of P' - P'''.Total surplus after the tax is measured by the area

A $2.00 tax per gallon of paint placed on the sellers of paint will shift the supply curve

Figure 8-9 -Refer to Figure 8-9.Which of the following combinations will maximize the deadweight loss from a tax?

John has been in the habit of mowing Willa's lawn each week for $20.John's opportunity cost is $15,and Willa would be willing to pay $25 to have her lawn mowed.What is the maximum tax the government can impose on lawn mowing without discouraging John and Willa from continuing their mutually beneficial arrangement?

Henry George argued that the government should raise

Scenario 8-1 Claudia would be willing to pay as much as $100 per week to have her house cleaned.John's opportunity cost of cleaning Claudia's house is $70 per week. -Refer to Scenario 8-1.Assume Claudia is required to pay a tax of $15 when she hires someone to clean her house.Which of the following is true?

Sellers of a product will bear the larger part of the tax burden,and buyers will bear a smaller part of the tax burden,when the

Taxes on labor tend to encourage the elderly to retire early.

Figure 8-2 The vertical distance between points A and B represents a tax in the market. -Refer to Figure 8-2.The per-unit burden of the tax on sellers is

Figure 8-2 The vertical distance between points A and B represents a tax in the market. -Refer to Figure 8-2.The imposition of the tax causes the price received by sellers to