Which of the following statements iscorrect? Choose an answer:O 1. Regardless of which side of the market the tax is levied on, the more inelastic side of the market bears thehigher tax burden.O 2. If the supply is more elastic than the demand, then the suppliers bear the greater tax burdenthan the buyers.3. The tax burden is incurred on the side of the market where the tax is levied.O 4. The tax burden is always borne half by the supplier and half by the customer.O 5. If the demand is more inelastic than the supply, then the providers bear the greatertax burden than the buyers.O00

The markets are operated by the working of the buyers, and sellers of goods, services, assets,…

Answered: Which of the following statements is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose George made $20,000 last year and that he lives in the country of Harmony. The way Harmony levies income taxes, all citizens must pay 10 percent in taxes on their first $10,000 in earnings and then 50 percent in taxes on anything else they might earn. Given that George earned $20,000 last year, his marginal tax rate on the last dollar he earns will be rate for his entire income will be and his average tax O 10 percent; 50 percent O 50 percent; less than 50 percent O 10 percent; less than 50 percent O 50 percent; 50 percent
1
What is the tax rate percentage and what is it applied to in order to fund and pay for Medicare? O 2.9 percent on wages 5.8 percent on real estate sales 1.5 percent on inheritances for estates valued at more than $15,000. 8 percent on elective surgeries and medical tourism.
A tax is imposed like in the figure below. This will REDUCE the producer surplus by 12 6 5 2 O24 08 18 I OI choose to use one of my three skips on this question. O 10 8 12 S+$2 tax S units.
Suppose demand and supply of gasoline are given by the following linear functions: Qd = 100 - 20P Qs = 50 + 10P where Q is the quantity in millions of litres and P is the price per litre. Suppose a tax of $1.10 per litre is imposed on gasoline. The deadweight loss equals: O A. $2.13 million O B. $4.03 million OC. $3.33 million O D. $2.70 million
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Suppose that a country has 20 million households. Ten million are poor households that each have labor market earnings of $20,000 per year and 10 million are rich households that each have labor market earnings of $80,000 per year. If the government enacted a marginal tax of 10 percent on all labor market earnings above $20,000 and transferred this money to households earning $20,000 or less, would the incomes of the poor rise by $8,000 per year? O A. No. Workers in rich and poor households would work less because of the marginal tax. O B. Yes. 10% of $80,000 is $8,000; therefore, $8,000 from each rich household would be transferred to each poor household. O C. There is not enough information to determine household behavior in this case. O D. No. Only workers in rich households would work less because of the marginal tax.
QUESTION 16 16. Is the total expenditure of revenue on a government program (revenue collected by a tax) the full measure of the program's cost to society? O a) Yes. O b) No, because the benefit to society always exceeds the dollar cost of government programs. O c) No, because this does not include the efficiency cost of collecting the tax revenue. O d) No, because it does not include the cost of program administration and losses due to corruption.
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
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10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 300 600 900 1200 1500 1800 2100 Supply Demand 2400 Suppose that a tax of $3 was inserted into the market above, what would be the new price that consumers pay? O a.7 O b.6 O c. 8 O d.5
Consider the effects of two taxes: lump-sum tax and a price distorting tax. Consider a consumer. Let the price of good X be Px, and the price of good Y be Py = 1. In the figure below. The budget line Lo of the consumer is the before-tax budget line. In the figure below, A, B, C, D, and E are some unknown numbers. E D L2 Uo U2 Lo A 1. Using A, B, C, D, and E, answer the value of the income of the consumer.

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