Question : 11) Neither the demand nor the supply of gasoline perfectly : 1226575

Economics

11) Neither the demand nor the supply of gasoline is perfectly elastic or inelastic. When the government increases the federal tax on gasoline, the effect on buyers is that the price they pay

A) rises.

B) falls.

C) does not change.

D) rises if the demand is inelastic and falls if the demand is elastic.

E) rises if the supply is inelastic and falls if the supply is elastic.

12) The demand curve for pizza is downward sloping and the supply curve is upward sloping. If the government imposes a $2 tax on a pizza, ________ the tax.

A) only consumers pay

B) only producers pay

C) both producers and consumers pay part of

D) neither producers nor consumers pay part of

E) the government pays

13) Neither the demand nor the supply of automobiles is perfectly elastic or inelastic. If the government imposes a $1,000 tax on automobiles, then the price of an automobile buyers pay

A) increases by $1,000.

B) increases by less than $1,000.

C) increases by more than $1,000.

D) decreases by $1,000.

E) does not change.

14) Neither the demand nor the supply of sugar is perfectly elastic or inelastic. If the government imposes a 5 percent tax on sugar, the

A) price of sugar buyers pay falls by 5 percent.

B) price of sugar buyers pay increases by less then 5 percent.

C) price of sugar buyers pay does not change.

D) quantity of sugar increases.

E) price of sugar buyers pay rises by 5 percent.

15) Giving in to the demand of protestors, suppose the French government reduces the tax on gasoline by 15 percent. Neither the demand for gasoline nor the supply of gasoline is perfectly elastic or inelastic. As a result of the tax cut, the price for a gallon of gasoline paid by buyers

A) falls by 15 percent.

B) rises by 15 percent.

C) falls by less than 15 percent.

D) rises by less than 15 percent.

E) falls by more than 15 percent.

16) Neither the demand for gasoline nor the supply of gasoline is perfectly elastic or inelastic. If the federal government eliminated the 18.4 cents per gallon gasoline tax, the price paid by buyers would

A) decrease by less than 18.4 cents.

B) decrease by 18.4 cents.

C) decrease by more than 18.4 cents.

D) stay the same.

E) increase by 18.4 cents.

17) To calculate the revenue government receives when a tax is imposed on a good, multiply the

A) pre-tax equilibrium price by the pre-tax quantity.

B) after-tax equilibrium price by the after-tax quantity.

C) tax by the pre-tax quantity.

D) tax by the after-tax quantity.

E) after-tax equilibrium price by the after-tax quantity and then subtract the pre-tax equilibrium price multiplied by the pre-tax quantity.

18) The imposition of a tax on a good enables the government to

A) raise the price received by sellers of the goods that have been taxed.

B) lower the price paid by buyers for the goods that have been taxed.

C) create a more efficient economic system.

D) take part of consumer and producer surplus as tax revenue when the good is purchased.

E) decrease the deadweight loss in this market.

19) In the figure above, suppose that the government imposes a tax of $4 per pizza. Then, the

A) buyers and sellers equally share the incidence of the tax.

B) shaded area is the deadweight loss from the tax.

C) shaded area is the tax revenue from the tax.

D) Both answers A and B are correct.

E) Both answers A and C are correct.

20) In the figure above, suppose that the government imposes a tax of $4 per pizza. Then, the tax revenue collected by the government equals

A) $240.

B) $320.

C) $160.

D) $120.

E) $4.

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July 1, 2023

9.1 The United States in the International Economy

1) Following the tariff imposed on Chinese tires, some businesspeople correctly argued that the U.S. tariff would result in

A) China retaliating by raising tariffs on some U.S. exports.

B) China halting the sale of all products in the United States.

C) U.S. firms never being able to meet the demand for U.S.-produced tires.

D) the government demanding price cuts from U.S. tire manufacturers.

2) Workers in industries protected by tariffs and quotas are likely to support these trade restrictions because

A) they do not want to offend their employers who want them.

B) politicians lobby to convince workers the restrictions will make them better off.

C) they believe the restrictions will protect their jobs.

D) they don't understand that the restrictions will threaten their jobs.

3) The intention of the U.S. tariff on Chinese tires was to

A) protect jobs in the U. S. tire industry.

B) protect infant industries in tire U.S. tire market.

C) insure that Chinese tires meet U.S. quality and safety standards.

D) save the government money by restricting the sale of more expensive Chinese-made tires.

4) In the 1930s, the United States charged an average tariff rate ________. Today, the rate is ________.

A) of 100 percent; 20 percent

B) above 50 percent; less than 1.5 percent

C) of less than 10 percent; over 40 percent

D) of 17 percent; 33 percent

5) A tariff is a tax imposed by a government on

A) exports.

B) services.

C) imports.

D) luxury items.

6) Goods and services bought domestically but produced in other countries are referred to as

A) exports.

B) imports.

C) transfer payments.

D) foreign consumption.

7) Exports are domestically produced goods and services

A) sold to other countries.

B) sold to the government.

C) sold at home.

D) which are used to produce other goods and services.

8) When Roxanne, a U.S. citizen, purchases a designer dress from Barneys of New York that was made in Milan, the purchase is

A) both a U.S. and an Italian import.

B) a U.S. import and an Italian export.

C) a U.S. export and an Italian import.

D) neither an export nor an import for either country.

9) When BMW, a German company, purchases a welding machine that was made in Toronto, the purchase is

A) both a German and a Canadian import.

B) a German import and a Canadian export.

C) a German export and a Canadian import.

D) neither an export nor an import for either country.

10) Which of the following statements about the importance of trade to the U.S. economy is true?

A) Since 1950, both exports and imports have steadily decreased as a fraction of U.S. gross domestic product.

B) Overall, about 80 percent of U.S. manufacturing jobs depend directly or indirectly on exports.

C) The United States is the second largest exporter in the world.

D) The U.S. economy is highly dependent on international trade for growth in its gross domestic product.