Essentials of Economics (MindTap Course List)
8th Edition
ISBN: 9781337091992
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 10, Problem 4CQQ
To determine
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Which of the following statements about corrective taxes is generally NOT true?
a. They raise government revenue.
b. They reduce the quantity sold in a market.
c. They increase what consumers pay for the good.
d. They cause deadweight losses.
A tax on umbrellas will most likely
Select one:
a.cause a large decline in the sales of umbrellas because demand is elastic.
b.be an effective way to tax those who don’t earn enough to pay income taxes.
c.fall mostly on the umbrella buyers rather than the producers.
d.raise large amounts of tax revenue for the government.
Which of the following statements about corrective taxes is generally not true?
a) Economists prefer them to command-and-control regulation.
b) They raise government revenue.
c) They cause deadweight losses.
d) They reduce the quantity sold in a market.
Chapter 10 Solutions
Essentials of Economics (MindTap Course List)
Ch. 10.1 - Prob. 1QQCh. 10.2 - Prob. 2QQCh. 10.3 - Prob. 3QQCh. 10 - Prob. 1CQQCh. 10 - Prob. 2CQQCh. 10 - Prob. 3CQQCh. 10 - Prob. 4CQQCh. 10 - Prob. 5CQQCh. 10 - Prob. 6CQQCh. 10 - Prob. 1QR
Ch. 10 - Prob. 2QRCh. 10 - Prob. 3QRCh. 10 - Prob. 4QRCh. 10 - Prob. 5QRCh. 10 - Prob. 6QRCh. 10 - Prob. 1PACh. 10 - Prob. 2PACh. 10 - Greater consumption of alcohol leads to more motor...Ch. 10 - Prob. 4PACh. 10 - The many identical residents of Whoville love...Ch. 10 - Prob. 6PACh. 10 - Prob. 7PACh. 10 - Prob. 8PACh. 10 - Prob. 9PA
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- Which of the following statements about correctivetaxes is generally NOT true?a. They increase what consumers pay for the good.b. They raise government revenue.c. They reduce the quantity sold in a market.d. They cause deadweight losses.arrow_forwardWhich of the following best describes why the government is not able to decide whether it will be consumers or producers will pay a tax. a. The tax changes the equilibrium price, so that producers and consumers share the burden of the tax. b. The tax corrects an externality. c. Producers will always pass the entire tax onto consumers d. A tax on consumers will result in an increase in supplyarrow_forwardWhat are pros and cons to increasing the gasoline tax?arrow_forward
- Which of the markets is the best market to tax? P P a. C. D S P Q S D Q P b. S d. D D Q S Qarrow_forwardWhy do producers have more interest in government regulations than consumers do?arrow_forwardTo minimize deadweight loss associated with taxation, policy makers should A.impose flat tax rates instead of progressive tax rates. B.impose taxes in markets with positive externalities. C.all of these D.impose taxes in markets with imperfect competition.arrow_forward
- e. What happens when government imposes a tax of 60 cents per gallon on buyers?arrow_forwardIf the government wants to raise tax revenue, which of the following items are good candidates for an excise tax? Choose one or more: A. toilet paper B. automobile tires C. cigarettes D. sweet potatoesarrow_forwardWhich of the following is an example of an exemption? A. people paying less on their taxes because they take care of childrenB. profits earned after costs are subtracted from total earningsC. amount of money used to pay for maintaining national parksD. money paid by corporationsarrow_forward
- 1. The equilibrium price of juice was initially $1.80 per bottle, and the equilibrium quantity was 8,000 bottles per day. When the government imposed a tax of $0.50 per bottle, the price went up to $2.18 per bottle, and quantity fell by 12%. A) How much of the tax (in $/bottle) are the buyers paying? B) How much of the tax (in $/bottle) is shouldered by the sellers? C) After the tax is imposed, how many bottles will be consumed?arrow_forwardTo determine the optimal amount of a public good to supply, the government must know Question 9Answer a. the price elasticity of demand of each buyer. b. the supply curve of the government. c. everyone's valuation for the public good. d. the revenue of selling the good.arrow_forward$15 $12 $8 28 Select one: a. $7 b. $3 500 700 C. $4 d. $15 Supply Social value Demand The figure above shows a market for Softella medicated tissues. Assume the only use for the tissues is to wipe and clean your hands, which prevents the spread of germs to others. If the government were to subsidize the users of the tissues, what would be the dollar amount of the subsidy? Quantity of boxes of so ftella medicated tissuesarrow_forward
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