Homework Answers
1. Tax revenue increases when the price elasticity of demand or price elasticity of supply is inelastic. When the demand is unit elastic, tax revenue is at its maximum. And when the price elasticity is greater than 1, increase in tax decreases the tax revenue. So, the tax revenue can go up or can go down depending on the situation when the tax size is increased.
Answer: option A
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QUESTION 1 Which of the folllowing statements is correct? Oa The tax revenue can go up or go down depending on th...
I need help solving this Asap. thanks alot. Figure 1: Supply and Demand in the Market...
I need help solving this Asap. thanks alot.
Figure 1: Supply and Demand in the Market for a Good Price ($/unit) 35 27 Supply 23 19 15 13 11 9 Demand 5 13 17 Quantity (units) 11 12 10 8 6 14. Refer to Figure 1. At the market equilibrium, total consumer surplus is $10 b. $50 а. $100 d. $200 15. Refer to Figure 1. Holding the supply curve fixed, assume demand increased, which caused the equilibrium price to...
Suppose the government imposes a tax on cheese. The deadweight loss from this tax will likely...
Suppose the government imposes a tax on cheese. The deadweight loss from this tax will likely be greater in the a. eighth year after it is imposed than in the first year after it is imposed because demand and supply will be more elastic in the first year than in the eighth year. b. first year after it is imposed than in the eighth year after it is imposed because demand and supply will be more elastic in the first...
QUESTION 17 Figure 8-24. The figure represents the relationship between the size of a tax and...
QUESTION 17 Figure 8-24. The figure represents the relationship between the size of a tax and the tax revenue raised by that tax 9 Tax Resenue Tax Side Refer to Figure 8-24. Tax revenue would O a. decrease if the economy began at point B and then the tax rate was decreased ob increase if the economy began at point and then the tax rate was decreased c.decrease if the economy began at point and then the tax rate was...
I need help with these Mcq's please. Thank you 37. Efficiency in a market is achieved...
I need help with these Mcq's please. Thank you
37. Efficiency in a market is achieved when cial planner intervenes and sets the quantity of output after evaluating buyers willingness to pay and sellers' costs the sum of producer surplus and consumer surplus is maximized all firms are producing the end at the same low cost per unit. no buyer is willing to pay more than the equilibrium price for any unit of the good. C ( 38. Total surplus...
QUESTION 12 Figure: The graph below shows a demand curve and four supply curves 1 Price...
QUESTION 12 Figure: The graph below shows a demand curve and four supply curves 1 Price Refer to Figure. If a tax is imposed in the above market then which supply curve will have highest deadweight lossi a. S2 Oc. SA. d.53. QUESTION 18 When boats are taxed and sellers of boats are required to pay the tax to the government, a. there is a movement downward and to the right along the demand curve for boats. Ob the quantity...
2) Chile is an importer of computer chips, taking the world price of $12 per chip...
2)
Chile is an importer of computer chips, taking the world price
of $12 per chip as given. Suppose Chile imposes a $7 tariff on
chips. Which of the following outcomes is possible?
A.
The price of chips in Chile increases to $16; the quantity of
Chilean-produced chips increases; and the quantity of chips
imported by Chile decreases.
B.
The price of chips in Chile increases to $19; the quantity of
Chilean-produced chips increases; and the quantity of chips
imported...
Problem #12 of 24 Tax evasion usually involves all of the following except Oa. an underpayment...
Problem #12 of 24 Tax evasion usually involves all of the following except Oa. an underpayment of tax. Ob. an affirmative act by the taxpayer to evade the tax. Oc. planning a transaction to lower the tax liability. Od. willfulness on the part of the taxpayer. Problem #13 of 24 Deductions from adjusted gross income (AGI) are Oa. never subject to further reduction based on the income of the taxpayer. Ob. not synonymous with itemized deductions. Oc. referred to as...
QUESTION 3 Figure Price Supply P K I P" P B M N Demand Quantity Refer...
QUESTION 3 Figure Price Supply P K I P" P B M N Demand Quantity Refer to Figure. If the government imposes a tax size of P- P" in the above market then the area L+M+Y represents a. consumer surplus after the tax. producer surplus after the tax. Cconsumer surplus before the tax. producer surplus before the tax. QUESTION 4 4 point Figure Supply Dennd Quantity Q1 02 Q3 Q Qs Refer to Figure. If the government impose a tax...
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) In a smal...
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) In a small country, the net national cost of tariff protection is equal to the reduction in consumer surplus minus A) the increase in produær surplus. B) the increase in government revenue and the increase in producer surplus. C) the efficiency loss and the consumption side loss D) the gain to foreigners. E) the increase in government revenue. 2) Tariffs reallocate income from A)...
D Question 20 1 pts Figure 8-7 The vertical distance between points A and B represents...
D Question 20 1 pts Figure 8-7 The vertical distance between points A and B represents a tax in the market. Price 24 Supply 20 18 l6 14 10 5 10 15 20 25 30 35 40 45 0 55 60 Danti Refer to Figure 8-7. Which of the following statements is correct? The loss of producer surplus that is associated with some sellers dropping out of the market as a result of the tax is $30. 。The loss of...
I need help solving this Asap. thanks alot.
Figure 1: Supply and Demand in the Market for a Good Price ($/unit) 35 27 Supply 23 19 15 13 11 9 Demand 5 13 17 Quantity (units) 11 12 10 8 6 14. Refer to Figure 1. At the market equilibrium, total consumer surplus is $10 b. $50 а. $100 d. $200 15. Refer to Figure 1. Holding the supply curve fixed, assume demand increased, which caused the equilibrium price to...
Suppose the government imposes a tax on cheese. The deadweight loss from this tax will likely be greater in the a. eighth year after it is imposed than in the first year after it is imposed because demand and supply will be more elastic in the first year than in the eighth year. b. first year after it is imposed than in the eighth year after it is imposed because demand and supply will be more elastic in the first...
QUESTION 17 Figure 8-24. The figure represents the relationship between the size of a tax and the tax revenue raised by that tax 9 Tax Resenue Tax Side Refer to Figure 8-24. Tax revenue would O a. decrease if the economy began at point B and then the tax rate was decreased ob increase if the economy began at point and then the tax rate was decreased c.decrease if the economy began at point and then the tax rate was...
I need help with these Mcq's please. Thank you
37. Efficiency in a market is achieved when cial planner intervenes and sets the quantity of output after evaluating buyers willingness to pay and sellers' costs the sum of producer surplus and consumer surplus is maximized all firms are producing the end at the same low cost per unit. no buyer is willing to pay more than the equilibrium price for any unit of the good. C ( 38. Total surplus...
QUESTION 12 Figure: The graph below shows a demand curve and four supply curves 1 Price Refer to Figure. If a tax is imposed in the above market then which supply curve will have highest deadweight lossi a. S2 Oc. SA. d.53. QUESTION 18 When boats are taxed and sellers of boats are required to pay the tax to the government, a. there is a movement downward and to the right along the demand curve for boats. Ob the quantity...
2)
Chile is an importer of computer chips, taking the world price
of $12 per chip as given. Suppose Chile imposes a $7 tariff on
chips. Which of the following outcomes is possible?
A.
The price of chips in Chile increases to $16; the quantity of
Chilean-produced chips increases; and the quantity of chips
imported by Chile decreases.
B.
The price of chips in Chile increases to $19; the quantity of
Chilean-produced chips increases; and the quantity of chips
imported...
Problem #12 of 24 Tax evasion usually involves all of the following except Oa. an underpayment of tax. Ob. an affirmative act by the taxpayer to evade the tax. Oc. planning a transaction to lower the tax liability. Od. willfulness on the part of the taxpayer. Problem #13 of 24 Deductions from adjusted gross income (AGI) are Oa. never subject to further reduction based on the income of the taxpayer. Ob. not synonymous with itemized deductions. Oc. referred to as...
QUESTION 3 Figure Price Supply P K I P" P B M N Demand Quantity Refer to Figure. If the government imposes a tax size of P- P" in the above market then the area L+M+Y represents a. consumer surplus after the tax. producer surplus after the tax. Cconsumer surplus before the tax. producer surplus before the tax. QUESTION 4 4 point Figure Supply Dennd Quantity Q1 02 Q3 Q Qs Refer to Figure. If the government impose a tax...
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) In a small country, the net national cost of tariff protection is equal to the reduction in consumer surplus minus A) the increase in produær surplus. B) the increase in government revenue and the increase in producer surplus. C) the efficiency loss and the consumption side loss D) the gain to foreigners. E) the increase in government revenue. 2) Tariffs reallocate income from A)...
D Question 20 1 pts Figure 8-7 The vertical distance between points A and B represents a tax in the market. Price 24 Supply 20 18 l6 14 10 5 10 15 20 25 30 35 40 45 0 55 60 Danti Refer to Figure 8-7. Which of the following statements is correct? The loss of producer surplus that is associated with some sellers dropping out of the market as a result of the tax is $30. 。The loss of...
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