Ch 8

If a tax is placed on the product in this market, total surplus is the area a. A+B+C+D b. A+B+C+D+E+F c. B+C+E+F d. E+F e. A+D

a. A+B+C+D

If a tax is placed on the product in this market, consumer surplus is the area a. A b. A+B c. A+B+E d. A+B+C+D e. D

a.A

If there is no tax placed on the product in this market, total surplus is the area a. A+B+C+D b. A+B+C+D+E+F c. B+C+E+F d. E+F e. A+D+E+F

b. A+B+C+D+E+F

If there is no tax placed on the product in this market, producer surplus is the area a. A+B+C+D b. C+D+F c D d. C+F e. A+B+E

b. C+D+F

If there is no tax placed on the product in this market, consumer surplus is the area a. A+B+C b. D+C+B c. A+B+E d. C+D+E e. A

c. A+B+E

If a tax is placed on the product in this market, tax revenue paid by the sellers is the area a. A b. B c. C d. B+C e. B+C+E+F

c. C

Which of the following would likely cause the greatest deadweight loss? a. a tax on cigarettes b. a tax on salt c. a tax on cruise line tickets d. a tax on gasoline

c. a tax on cruise line tickets

If a tax is placed on the product in this market, tax revenue paid by the buyers is the area a. A b. B c. C d. B+C e. B+C+E+F

d. B+C

If a tax is placed on the product in this market, producer surplus is the area a. A b. A+B+E c. C+D+E d. D e. A+B+C+D

d. D

If a tax is placed on the product in this market, deadweight loss is the area a. B+C b. B+C+E+F c. A+B+C+D d. E+F e. A+D

d. E+F

Which of the following is true with regard to the burden of the tax in exhibit 4? a. the buyers pay a larger portion of the tax because demand is more inelastic than supply b. the buyers pay a larger portion of the tax because demand is more elastic than supply c. the sellers pay a larger portion of the tax because supply is more elastic than demand d. the sellers pay a larger portion of the tax because supply is more inelastic than demand

d. the sellers pay a larger portion of the tax because supply is more inelastic than demand