Exam 8: Taxes

The figure above shows the market for MP3 players, where S is the supply curve and D is the demand curve before any tax is imposed. The government imposes a $10 per unit tax on sellers of MP3 players. -Based on the figure above,the deadweight loss from the tax is

A sales tax imposed on sellers of a good

For a given elasticity of supply,the more ________ the demand for the good,the share of the tax paid by the buyers is ________.

The supply of oil is more elastic than the demand for oil.If oil is taxed $10 per barrel,how will the tax be divided between the buyer and seller?

When it comes to taxes,horizontal equity means that

In the Village of Punjab,Sheryl owns a well,which is the only source of drinking water.The supply of water is perfectly inelastic at a quantity of 1,000 gallons of water per day.At a price of $2.00 per gallon,the quantity demanded per day is 1,000 gallons.The government imposes a $0.50 per gallon tax. a.After the tax is imposed,what is the price paid by the villagers? What is the price received by Sheryl? b.How much revenue does the government collect? c.What fraction of the tax does Sheryl pay? What fraction is paid by the villagers?

The figure above shows the market for MP3 players, where S is the supply curve and D is the demand curve before any tax. The government imposes a $10 per unit tax on buyers of MP3 players. -Based on the figure above,after the tax is imposed,the price (including the tax)paid by the buyer is ________ per MP3 player.

-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 tax incidence is

-The graph shows the market for cell phones.The government imposes a sales tax on cell phones at $10 a cell phone.The excess burden of the sales tax on cell phones is ________.

-In the labor market shown in the graph,the government introduces a 10 percent income tax.The employer pays ________ cents of the tax and the employee pays ________ cents of the tax.

Neither the supply of nor demand for a good is perfectly elastic or perfectly inelastic.So,imposing a tax on the good results in a ________ in the price paid by buyers and ________ in the equilibrium quantity.

If neither the demand nor supply of a good is perfectly elastic or inelastic,a tax on the good ________ consumer surplus and ________ producer surplus.

The imposition of a tax on a good enables the government to

"In the United States,more tax revenue is collected through Social Security taxes than through property taxes." Is the previous statement correct or incorrect?

-The figure above shows the market for gasoline.The government has imposed a tax on gasoline. a.What is the amount of the tax per gallon of gasoline? b.How much tax revenue will government collect from this tax? c.How much of the tax is paid by buyers? How much is paid by sellers? Which is more elastic,the supply or demand for gasoline?

Taxes on corporate profit are a type of ________ tax.

The figure above shows the demand (D) and supply (S) curves for insulin before any tax is imposed. The government imposes a $0.20 a dose tax on sellers of insulin. -Based on the figure above,after the tax is imposed,the price paid by the buyer is ________,and the price received (and kept)by the seller is ________.

-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 employers?

If a tax is placed on suppliers of a good,then the incidence of the tax

Suppose the government decides to tax salt.The demand for salt is inelastic and the supply is quite elastic.Who bears most of the tax incidence and pays most of this tax?