Exam 8: Taxes

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.

Ali earns $20,000 and pays $2,000 in taxes; Maria earns $40,000 and pays $4,000 in taxes.Is this tax progressive,regressive,or proportional?

Progressive taxes can be justified as fair based on which of the following?

Tax incidence refers to

-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.The deadweight loss from this tax equals the region

If the supply of automobiles becomes more inelastic,then a tax on automobiles is

-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 largest amount of deadweight loss?

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

Suppose the demand for barley is perfectly elastic.The supply curve of barley is upward sloping.If a tax is imposed on barley,

-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 employees?

-The figure above shows the market for tires.According to the figure,the government collects ________ per month in total tax revenue.

Because the supply of land is perfectly inelastic,when governments tax land,the tax

We can see the inefficiencies created by a sales tax because

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 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. -In the figure above,at the market equilibrium with the tax,marginal benefit ________ marginal cost,and the quantity of MP3 players sold is ________.

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

If the average tax rate increases as income increases,then the

Suppose that,after government imposed an income tax on labor income,the wages paid by employers rose $1.00 and the wages received by employees fell by $0.20.What does that reveal about the elasticities of supply and demand?

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

-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?