Econ chapter 8
Why is taxing food a bad way to raise revenue from an equity standpoint?
Because poorer people spend a higher proportion of their income on food
Why is taxing food less inefficient than taxingbpther things?
Because there wont be tio much DWL
A tax that has no DWL can't raise any revenue for the government
False
A tax that raises no revenue for the government can't have any DWL
False
Consumer surplus rises it total consumer spending falls?
False
The government can raise its taxes by increasing the per-unit tax on cigarettes?
False
The laffer curve illustrates that, in sim circumstances, the government can reduce a tax on a good and increase the...
Government's tax revenue
If a 10 cent per pound tax is increased to 15 cents, the government's tax revenue...
Increases by less than 50 % and may even decline
If a 2 cent per egg tax increases to 3 cents, the DWL of the tax...
Increases by more than 50 %
DWL is likely to be smaller or larger in the long runs compared to the short run
Larger
The tax revenue is likely to be smaller or larger in the long run than I the short run
Smaller
The burden of tax will fall more heavily on..
The inelastic curve
A tax on a good has a deadweight loss if...
The reductiob in consumer and producer surplus is greater than the tax revenue
As a result of the tax, the price paid by consumers rises and ...
Total consumers spending falls as long as demand is elastic
All parties could be made better off with this transfer than they were with a tax
True