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,after the tax is imposed,the price paid by the buyer is ________ per MP3 player.

The buyer will pay the entire tax levied on a good when the demand for the good is ________ or when the supply of the good is ________.

-The figure above shows a labor market in which an income tax has been imposed. a.How many hours of labor were employed before the tax was imposed? b.How many hours of labor are employed after the tax? c.What was the wage rate employers paid and that workers received before the tax? d.What is the wage rate employers pay and that workers receive after the tax? e.What accounts for the difference between what employers pay and what workers receive?

To calculate the revenue government receives when a tax is imposed on a good,multiply the

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,after the tax is imposed,the government collects tax revenue of ________ a week.

The benefits principle of fair taxation

Which of the following is true? i.If supply is perfectly inelastic,the tax creates no deadweight loss. ii.The elasticities of supply and demand,not Congress,determine who pays the income tax. iii.A tax is progressive if the average tax rate falls with income.

-The above figure shows the labor market for land surveyors.Dave is a land surveyor.The total tax paid by Dave is equal to

-The above figure shows the labor market for land surveyors.Dave is a land surveyor.What is the tax incidence for this income tax?

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

________ tax rate equals ________.

-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.With the tax in place,the labor supply curve will

The incidence of a tax refers to

Because the supply of capital is highly elastic,taxing the income from capital results in i.firms that demand capital paying the greater share of the tax. ii.a decrease in the equilibrium quantity of capital. iii.a deadweight loss.

-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 total tax revenue is equal to

-The figure above shows the capital market. a.Before the government takes any action,what is the interest rate and quantity of capital? b.Suppose the government imposes a tax of 25 percent on the income from capital.After the tax,what is the equilibrium interest rate and quantity of capital? What is the after-tax interest rate? c.In the figure,darken the area that equals the deadweight loss from the tax.

If the demand curve for hamburgers is downward sloping and the supply curve for hamburgers is upward sloping,then a tax imposed on hamburgers ________ the price paid by buyers and ________ the price received by sellers.

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 tax ________ the price paid by the buyer by ________ per MP3 player.

Taxes on corporate profit are a type of ________ tax.

Cigarettes are highly addictive and therefore have a very low elasticity of demand.A $2.00 increase in the national sales tax on cigarettes would likely cause the price paid by buyers of cigarettes to