taxes

Which of the following statements is true about taxes?

Taxes decrease both consumer surplus and producer surplus while creating a deadweight loss.

Which of the following scenarios is not consistent with the Laffer curve?

The tax rate is very high, and tax revenue is very high.

Total surplus with a tax is equal to

consumer surplus, producer surplus, and tax revenue.

The term tax incidence refers to the

division of the tax burden between buyers and sellers.

If the supply of land is fixed, a tax on land would be paid

entirely by the landowners.

When a good is taxed, the burden of the tax

falls more heavily on the side of the market that is more inelastic.

The greater the elasticities of demand and supply the

greater the deadweight loss from a tax.

The more ________, the larger is the amount of the tax on the good that the ________ pays.

inelastic the demand for a good; buyers

A tax has a deadweight loss because

it induces buyers to consume less and sellers to produce less.

The burden of a luxury tax falls

more on the middle class than on the rich.

Suppose a tax is imposed on the buyers of a product. The burden of the tax will fall

n both the buyers and the sellers.

A tax on raw land causes

no deadweight loss.

A tax is imposed on the sellers of a product. The consumers will pay the full amount of the tax if demand is

perfectly inelastic.

Deadweight loss is the

reduction in total surplus that results from a tax.

When a tax is placed on a product, the price paid by buyers

rises, and the price received by sellers falls.

Buyers of a product will pay the majority of a tax placed on a product when

supply is more elastic than demand.

when perfectly inelastic for demand

the buyer will pay the entire tax

When a tax is imposed on the suppliers of a good or service, then

the demanders pay a larger part of the tax as the demand for the product becomes less elastic.