Which of the following statements are true:OA gasoline tax can be fair in the sense of the benefits principle, and it can be efficient as a pigovian tax.O Changing the income tax system form progressive to proportional makes the tax more efficient, but lessequitable.No matter what the circumstances, taxes always create deadweight losses.Taxes that promote equity, such as a progressive income tax, usually do so at the expense of efficiency.

A gasoline tax can be fairin the sense of the benefits principle and it can be efficient as a…

Answered: Which of the following statements are…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following graph depicts the impact in a market after the government imposes an excise tax. $16 Stafer tax a So before tax $10 PE $9 PE, $7 PE, $6 $3 Q Q5 1,000 1,400 Q 4,000 What is the value of the deadweight loss from taxation? $600 O $400 O $200 O $300 P.
Tax incidence is O A. the potential division of the burden of a tax between buyers and government in a market. O B. the potential division of the burden of a tax between buyers and sellers in a market. O C. the actual division of the burden of a tax between buyers and sellers in a market. O D. the actual division of the burden of a tax between buyers and government in a market.
O b. True Clear my choice 42. A tax on a good raises the price buyers pay, lowers the price sellers receive, and reduces the quantity sold. Select one: O a. False Ob. True 59. The government should send families $1000 per child even if
Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 15 million cases of cola were sold every month at a price of $7 per case. After the tax, 9 million cases of cola are sold every month; consumers pay $10 per case, and producers receive $4 per case (after paying the tax). A. The amount of the tax on a case of cola is ___ per case B. Of this amount, the burden that falls on consumers is ___ per case C. and the burden that falls on producers is ___ per case True or False: The effect of the tax on the quantity sold would have been the same as if the tax had been levied on consumers.
If the government wants to increase the tax revenue they collect from sellers, then it should O Tax goods that have low elasticity of demand and high elasticity of supply. O Tax goods that have high elasticity of demand and supply. Tax goods that have high elasticity of demand and low elasticity of supply. O Tax goods that have low elasticity of demand and supply.
Refer to Figure 3 below. If the government imposes a tax of $6 per unit in this market, what price will buyers pay per unit after the tax is imposed? 18- 16 Supply 14 12 10 4 Demand 30 60 90 120 150 180 210 240 270 Q Select one: a.12 b.8 c.10 O d.6 According to the Figure 3 above. If the government imposes a tax of $6 per unit in this market, how much is the burden of the tax on the sellers in this market? Select one: a.4 b.2 с. 8 d.6 00 OOOO
7. Taxation - An algebraic approach Suppose the supply of a good is given by the equation Q1,200P-1,200, and the demand for the good is given by the equation QD 2,400-400P, where quantity (Q) is measured in millions of units and price (P) is measured in dollars per unit. The government decides to levy an excise tax of $1.00 per unit on the good, to be paid by the seller. Calculate the value of each of the following, before the tax and after the tax, to complete the table that follows: 1. The equilibrium quantity produced 2. The equilibrium price consumers pay for the good 3. The price received by sellers Equilibrium Quantity (Millions of units) Equilibrium Price per Unit Paid by Consumers Price per Unit Received by Sellers Before Tax The government receives After Taxi Given the information you calculated in the preceding table, the tax incidence on consumers is on producers is per unit of the good: per unit of the good, and the tax incidence in tax revenue from levying an excise tax of…
Assume that the market for a good is in equilibrium at a price of $20 and a quantity of 100 units. After the government imposes a $5 per-unit excise tax on the good, the price that buyers pay for the good increases by $3. Which of the following are possible values for the government tax revenue and deadweight loss in the market? * O Tax revenue is $200, deadweight loss $0 O Tax revenue is $300, deadweight loss $O Tax revenue is $300, deadweight loss $100 Tax revenue is $500, deadweight loss $200 O Tax revenue is $500, deadweight loss $300 Assume that hot dogs and mustard are complementary goods. If the price of hot dogs increase, what will happen to the price and quantity sold of mustard? Price will increase and quantity sold will increase. Price will increase and quantity sold will decrease. Price will decrease and quantity sold will decrease. Price will decrease and quantity sold will increase. O None of the above.
5. Calculating tax incidence Suppose that the U.S. government decides to charge beer producers a tax. Before the tax, 10,000 cases of beer were sold every week at a price of $4 per case. After the tax, 5,000 cases of beer are sold every week; consumers pay $6 per case, and producers receive $3 per case (after paying the tax), The amount of the tax on a case of beer is S burden that falls on producers is True per case. True or False: The effect of the tax on the quantity sold would have been smaller if the tax had been levied on consumers. O False per case. Of this amount, the burden that falls on consumers is 5 per case, and the
If the government imposes a $5 excise tax on the production of wine, then from the perspective of wine consumers, the "effective" or after-tax supply curve for wine wil shift down vertically by more than $5 Mp verticaly by exactly SS down vertically by exoctly $5 dwn vertically hv less than $ atly Inv less then 15 left herleaty
The government is worried about high rates of cigarette smoking and so it's considering implementing a cigarettes tax. The government knows that the demand for cigarettes is very inelastic, and the supply of cigarettes is perfectly elastic. Which of the following statements are true? (Select all that apply.) O a. It doesn't matter how the tax is implemented. O b. There are positive externalities associated with smoking. O c. Smoking will decrease only slightly in the short-run. O d. Regardless of how the tax is implemented, consumers will pay the full amount of the tax. O e. The government will collect more revenue if the tax is on the suppliers. O f. Consumers and suppliers will split the burden of the tax. O g. Smoking will decrease more if the tax is the on the suppliers. O h. A tax on cigarettes is one way to make smokers internalize the cost of the externalities associated with smoking. O i. Smoking will decrease more in the long-run than in the short-run. O j. Smoking will…
Suppose that your state raises its sales tax from5 percent to 6 percent The state revenue commissionerlo~asts a 20 percent increase in sales tax revenue.Is this plausible? Explain.

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