Exam 8: Taxes

-The figure above shows the labor supply and labor demand curves for personal trainers in the state of Florida.The initial equilibrium hourly wage is $10.Suppose the state of Florida institutes an income tax on labor income of $6 an hour in order to buy voting machines for the next election.How much of the tax is paid by employees?

When each taxpayer pays the same average tax rate regardless of the taxpayer's income,the tax is

A tax for which the average tax rate decreases as income increases is defined as

The average tax rate

From the standpoint of efficiency,imposing a tax on the income from what type of resource is best because it creates the least inefficiency?

If the Social Security tax imposed on employers increases,then

The incidence of a tax refers to

The benefits principle of tax fairness argues that

The buyers pay all of a tax when the demand is

Suppose the supply of labor is more inelastic than the demand for labor.Then,a Social Security tax imposed on employers

The marginal tax rate is the

The proposition that taxpayers with the same ability to pay should pay the same taxes is called

Which of the following is true? i.If demand is perfectly elastic,the tax creates no deadweight loss. ii.The more elastic the supply of a factor of production,the greater is the deadweight loss from an income tax. iii.A tax is regressive if the average tax rate rises with income.

-The above figure shows the market for gourmet ice cream.In effort to reduce obesity,government places a $2 tax per gallon on suppliers in this market,shifting the supply curve from S₀ to S₁.The tax incidence is

-The above figure shows the supply curves in four different markets.If each of the markets has an identical downward sloping demand curve and the same tax is levied on suppliers,which market would produce the largest amount of deadweight loss?

The benefits principle of fair taxation

-The above figure shows the market for buckets of golf balls at the driving range.A new leisure time tax is placed on suppliers in this market,shifting the supply curve from S₀ to S₁.The amount of this tax is ________ per bucket of golf balls.

Progressive taxes can be justified as fair based on which of the following?

What happens to the acceptable wage rate at each level of employment once an income tax is levied on labor income?

-The figure above shows the market for tires.According to the figure,the government collects ________ per month in total tax revenue.