Exam 7: Taxes

If an excise tax is imposed on beer and collected from the producers,the _____ curve will shift _____ by the amount of the tax.

Assume the same upward supply curve for each of the following goods.Considering demand only,a tax on _____ would result in the LARGEST deadweight loss.

Use the following to answer question: -(Figure: The Shrimp Market)Use Figure: The Shrimp Market.If the government wants to limit shrimp sales to 250 pounds,it can impose a _____ excise tax on sellers,and the total tax revenue generated will be _____.

A tax of $20 on an income of $200,$40 on an income of $400,and $50 on an income of $500 is:

Use the following to answer question: -(Figure: The Gasoline Market)Use Figure: The Gasoline Market.The pretax equilibrium price is $3,and the equilibrium quantity before tax is 20,000 gallons.An excise tax has been levied on each gallon of gasoline supplied by producers.Based on the graph,the incidence of the tax on suppliers is:

_____ tax does NOT distort incentives and is best at promoting economic efficiency.

Use the following to answer question: -(Figure: Income Tax Payments)Use Figure: Income Tax Payments.Which panel or panels BEST represent the effects of a progressive income tax?

Cigarette taxes have eliminated the wedge between the demand price for cigarettes and the supply price of cigarettes.

Paying a tax of $20 on an income of $100,a tax of $15 on an income of $200,and a tax of $12 on an income of $300 is an example of a _____ tax.

A tax that takes a _____ percentage of income as income _____ is a _____ tax.

Use the following to answer question: -(Table: Taxes,Spending,and Income)Use Table: Taxes,Spending,and Income.Suppose Governor Meridias decides to initiate a state income tax.The first $50,000 of household income is tax-free,while any income above $50,000 is taxed at 10%.The tax rate for a household earning $75,000 is _____%.

If the demand for luxury yachts is very elastic,then a yacht tax would lead to:

The ability-to-pay principle says that:

A higher rate is MOST likely to decrease the amount of revenue that the government collects from an excise tax if demand is _____ and supply is _____.

If tax efficiency is the only goal,a tax system should be designed to minimize its:

The _____ rate applies to an additional $1 of taxable income.

According to the _____ principle,those who use public services should bear the burden of the tax that pays for them.

Suppose the absolute value of the price elasticity of demand for yachts equals 4.04,while the price elasticity of supply for yachts equals 0.22.If Congress reinstates a luxury tax on yachts,who will pay more of the tax?

Use the following to answer question: -(Figure: The Market for Hamburgers)Use Figure: The Market for Hamburgers.If the market is originally in equilibrium and the government imposes an excise tax of $0.80 per unit of the good sold,consumer surplus will be reduced by:

If demand and supply are both very elastic,a decrease in the rate of an excise tax will likely: