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. 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 received by the seller is ________ per MP3 player.

The assertion that people with the same ability to pay taxes should pay the same amount in taxes best represents the idea of

The proposition that people should pay taxes according to how easily they can bear the burden is known as the ________ principle.

The benefits principle of fairness of taxes is the proposition that

-The above figure shows the labor market for land surveyors.Dave is a land surveyor.What is the total income tax Dave pays each year?

________ tax is progressive if the ________.

Which of the following taxes best illustrate the ability-to-pay principle of tax fairness?

If the demand curve for a good is horizontal,a tax is levied on this product is

The deadweight loss from a tax

Ann pays $3,850 in taxes on an income of $38,500.Therefore her

The incidence of an income tax on labor income is generally that the tax is

Suppose the elasticity of demand for Mexican food is 3.00 and the elasticity of supply is 1.20.If the government imposes a sales tax on Mexican food,which of the following occurs? i.Less Mexican food is purchased by buyers. ii.Less Mexican food is produced by sellers. iii.The government receives the excess burden as revenue. iv.Both the consumer surplus and the producer surplus decrease.

If the average tax rate ________ as income increases,then the tax is a ________ 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 received and kept by sellers and a ________ in the price paid by buyers.

Taxes on corporate profit are a type of ________ tax.

The marriage tax problem in the U.S.tax code is a problem involving which of the following?

Taxes on labor income ________ a deadweight loss and ________ the supply of labor.

-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 S? to S?.The amount of this tax is ________ per bucket of golf balls.

The phrase "tax incidence" refers to

-The figure above shows the market for a life-saving drug.Suppose the government imposes a $150 tax per dose on the drug.Show and describe the impact on the market.Who pays this tax?