Exam 8: Taxes

-In the labor market shown in the graph,the government introduces a 10 percent income tax.The employer pays ________ cents of the tax and the employee pays ________ cents of the tax.

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 government collects tax revenue of ________ a week.

-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 largest amount of deadweight loss?

When governments tax capital income,the equilibrium quantity of capital

If the Social Security tax imposed on employers increases,then

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

If a good has a tax levied on it,sellers respond to the price that excludes the tax and not the price with the tax because

Why are sales taxes,which require that everyone pay the same percentage tax,considered regressive taxes?

-The above figure shows the labor market for land surveyors.Dave is a land surveyor.With the income tax,Dave works ________ hours per year and his after-tax wage rate is ________ per hour.

-In the figure above,suppose that the government imposes a tax of $4 per pizza.Then,the

________ tax rate equals ________.

Which of the following is true? i.If demand is perfectly elastic,the tax creates no deadweight loss. ii.The more elastic the supply of a factor of production,the greater is the deadweight loss from an income tax. iii.A tax is regressive if the average tax rate rises with income.

A tax for which the average tax rate decreases as income increases is defined as

-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 S? to S?.The total tax revenue is equal to

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

If the marginal tax rate is 20 percent,and Pearl earns an extra $100,how much must Pearl pay in additional taxes?

Vertical equity is the idea that

Explain under what conditions a sales tax on a specific good would be paid entirely by buyers.

Suppose the supply of apartments in Minneapolis is perfectly elastic.The effect of a $100 per month tax on all apartments is that