MRU6.3: Tax Revenue and Deadweight Loss

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

Q5: Which of the following calculations can be used to determine the amount of revenue generated by a tax? - (Buyer price − seller price) × After-tax quantity - Before-tax price × (Before-tax quantity − after-tax quantity) - Before-tax price × (Before-tax quantity − after-tax quantity) - (Seller price − buyer price) × After-tax quantity

A: (Buyer price − seller price) × After-tax quantity

Q10: Why was the luxury tax on yachts such an incredible failure? - Because the elasticity of the supply of yachts changed suddenly as a result of the tax. - Because the government neglected to consider that the demand for yachts is very elastic. - Because the government neglected to consider that the supply of yachts is very elastic. - Because the elasticity of the demand for yachts changed suddenly as a result of the tax.

A: Because the government neglected to consider that the demand for yachts is very elastic.

Q2: What does a tax do to consumer and producer surplus? - It reduces the sum of consumer and producer surplus but may increase one or the other. - It increases both consumer and producer surplus. - It reduces both consumer and producer surplus. - It increases the sum of consumer and producer surplus but may reduce one or the other.

A: It reduces both consumer and producer surplus.

Q4: Suppose the government imposes a tax on a market that was otherwise in equilibrium. What happens to the producer surplus? - All of it is transferred to buyers in the form of consumer surplus. - Some of it is transferred to the government in the form of tax revenue. - All of it is transferred to the government in the form of tax revenue. - Some of it is transferred to buyers in the form of consumer surplus.

A: Some of it is transferred to the government in the form of tax revenue.

Q1: Why does government levy taxes? - To raise revenue - To increase consumer surplus - To decrease producer surplus - To raise prices

A: To raise revenue

Q9: In general, it is better to tax goods with _______ demand because _______. - inelastic; fewer trades will be discouraged - elastic; fewer trades will be discouraged - elastic; more trades will be encouraged - inelastic; more trades will be encouraged

A: inelastic; fewer trades will be discouraged

Q7: The units of a good that would be traded without a tax, but that are not traded when a tax is imposed, generate: - no benefits for buyers, sellers, or the government. - producer surplus for sellers, but no consumer surplus. - tax revenue for the government. - consumer surplus for buyers, but no producer surplus.

A: no benefits for buyers, sellers, or the government.

Q3: Consumer surplus falls after a tax because the price buyers pay _______ and the quantity exchanged _______. - falls; falls - falls; rises - rises; falls - rises; rises

A: rises; falls

Q8: The value of the trades not made because of a tax is known as: - the tax revenue. - the deadweight loss of a tax. - the government surplus of a tax. - the tax disequilibrium.

A: the deadweight loss of a tax.

Q6: Deadweight loss is: - the net change in consumer and producer surplus. - the revenue generated by a tax. - only wastefulness caused by overproduction. - the value of the trades not made because of the tax.

A: the value of the trades not made because of the tax.


संबंधित स्टडी सेट्स

Ch 14 Autonomic Nervous System, chapter 14, chapter 15

View Set

Macroeconomic 2105 Final Exam UGA, UGA Macro CH 9 Problems and Applications (Book), Econ 2105 Chs 9-12, Macroeconomic 2105 Final Study Guide

View Set

Customer Service Specialist Practice Examination

View Set

Seeley's Anatomy & Physiology 11th ed Chapter 7

View Set

Ignatavicius Assessment of Respiratory System; Chapter 27, Chapter 28 Care of the Pt Requiring Oxygen Therapy or Tracheostomy, Chapter 30: Care of Patients with Noninfectious Lower Respiratory Problems, Chapter 25: The Child with a Respiratory Disord...

View Set

Ch. 7 Management Roles, Functions, and Skills

View Set

Chapter 5: Protection of Security of Assets

View Set

BS 161 DNA to RNA transcription C5

View Set

Traditional Quiz 3, traditional quiz 4 ch 12 &13, Traditional Quiz 2

View Set