Exam 7: Taxes

If the elasticity of demand is _____ and the elasticity of supply is _____,tax revenue is likely to decrease if the tax rate is increased.

The number of seats in a football stadium is fixed at 70,000.The city decides to impose a tax of $10 per ticket.In response,the team management raises the ticket price from $30 to $40 and still sells all 70,000 tickets.The tax caused a change in the consumer surplus of _____,a change in the producer surplus of _____,and a deadweight loss of _____.

Use the following to answer question: -(Figure: The Market for Blue Jeans)Use Figure: The Market for Blue Jeans.The government recently levied a $10 tax on the producers of blue jeans.What area or areas in the graph identify consumer and producer surplus after the tax was levied?

Use the following to answer question: -(Figure: The Market for Lattes)Use Figure: The Market for Lattes.If the excise tax increases from $1.50 to $2.25 per latte,government revenue will _____ by _____.

Given any downward-sloping demand curve for a good,the more price-elastic the supply curve,the _____ equilibrium output will fall and the _____ will be the deadweight loss when the government imposes an excise tax.

Use the following to answer question: -(Figure: The Market for Productivity Apps)Use Figure: The Market for Productivity Apps.If the government imposes a tax of $1 in this market,producers will receive _____ less per app and sell _____ fewer apps.

In the United States,poor people and the middle class pay the largest share of income taxes.

If the government wants to limit sales of a particular good,it may do so by imposing a quota.However,the same reduction in sales may be achieved by an appropriately chosen excise tax.

If the marginal tax rate and the average tax rate are equal for all levels of income,then the tax structure is proportional.

Use the following to answer question: -(Figure: The Market for SUVs)Use Figure: The Market for SUVs.If the government imposes a $60,000 tax on SUVs (collected from the producers),the price of SUVs will rise to _____ and the government will collect _____.

Assuming a normal upward-sloping supply curve and downward-sloping demand curve,if the government imposes a $5 excise tax on leather shoes and collects the tax from the suppliers,the price of leather shoes will:

An excise tax is levied on:

In the United States,taxes tend to be regressive at:

Use the following to answer question: -(Figure: The Market for SUVs)Use Figure: The Market for SUVs.If the government imposes a $30,000 tax on SUVs (collected from the producers),the price of SUVs will rise to _____ and the government will collect _____.

Which tax BEST illustrates the benefits principle of tax fairness?

Use the following to answer question: -(Figure: The Market for Lattes)Use Figure: The Market for Lattes.If the government assesses a tax of $0.75 on sellers of lattes,the price producers will receive for a latte after the tax will:

When the imposition of an excise tax causes the quantity demanded and quantity supplied to decrease relative to the no-tax equilibrium,this will result in:

A cost(s)NOT associated with the imposition of a tax is/are:

The burden of a tax on a good is said to fall completely on the producers if the:

A higher tax rate is more likely to increase tax revenue if the price elasticity of demand is _____ and the price elasticity of supply is _____.