Exam 8: Taxes

-The above figure shows the labor market for land surveyors.Dave is a land surveyor.If there was no income tax,Dave would work ________ hours per year and the wage rate would be ________ per hour.

The marginal tax rate equals 100 ×

-The above figure shows the market for capital.With the tax on capital income,the interest rate is ________ and firms use ________ million of capital.

-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?

Which of the following taxes best illustrate the benefits principle of tax fairness?

Which of the following taxes best illustrate the benefits principle of tax fairness?

-The figure above illustrates the market for antifreeze.Suppose the government decides to impose an $8 sales tax on every gallon of antifreeze sold. a.In the figure,illustrate the effect the tax has on the market for antifreeze. b.What is the equilibrium price of a gallon of antifreeze before the tax? What is the price paid by buyers after the tax? c.What is the equilibrium quantity of antifreeze before the tax? What is the equilibrium quantity after the tax? d.What is the revenue collected by the government from this tax? e.Do buyers or sellers bear the largest burden of the tax? f.Illustrate the deadweight loss created by the tax.

The benefits principle of fair taxation

Which of the following is correct?

A tax on labor income ________ the wage rate paid by employers,________ the wage rate received by employees,and ________ a deadweight loss.

The percentage of an additional dollar of income that is paid in tax is the

To levy a tax based on the benefits principle to pay for a bridge,the government

When a Social Security tax is imposed on workers,employment ________ and when a Social Security tax is imposed on employers,employment ________.

What are the similarities and differences between horizontal and vertical equity?

If taxes are collected on the basis of ability-to-pay and there are two taxpayers with the same income who also are identical in all other respects,which of the following is correct?

The argument that those who use the highways the most should pay most of the cost of providing them,is an example of

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 supply of sand is perfectly inelastic and the demand curve for sand is downward sloping.Hence,if a tax on sand is imposed,

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

-The demand for apple pies is perfectly elastic.If the government taxes apple pies at $1 a pie,then ________.