Exam 8: Taxes

If there is an income tax levied on labor income,the labor demand curve ________ and the labor supply curve ________.

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 2010 health care reform included a 10 percent tax on indoor tanning services.This tax would reflect _______ if indoor tanning leads to higher usage of government paid health care services from skin cancer.

Consider the market for dining at Mexican restaurants.Suppose the price elasticity of demand for Mexican food is 1.23 and the price elasticity of supply is 0.47.If the government imposes a tax on Mexican food,do buyers or sellers pay most of the tax? Why?

-The figure above shows the impact of an income tax.The revenue collected by the government equals area

With a proportional tax,as income increases the amount of tax paid

What is the difference between vertical equity and horizontal equity?

At harvest time the supply of wheat is perfectly inelastic.If the government taxes wheat at $1 a bushel,then

The largest percentage of the government's tax revenue received comes from

-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 smallest amount of deadweight loss?

Imposing a sales tax on sellers of a product has an effect that is similar to which of the following?

If the average tax rate is constant as income increases,then the tax is called

Vertical equity is the idea that

Which of the following is true? i.A tax on buyers has the same effect as the same sized tax on sellers. ii.The more elastic the demand,the larger is the share of the tax paid by the buyers. iii.The U.S.income tax is regressive.

A tax on income from land in Montana is borne entirely by landowners because the

-The figure above shows the market for tires.The government has imposed a tax on tires,and the buyers pay ________ of the tax.

The demand for insulin is quite inelastic.The demand for Pepsi is quite elastic.Suppose the elasticity of supply for insulin is the same as the elasticity of supply for Pepsi.If a $0.20 tax was imposed on each of these goods (holding everything else constant),which consumers would pay more of the tax?

A tax imposed on a resource's income is paid by both the resource's owners and the resource's employers,except for a tax

-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 total tax revenue is equal to

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