Question : 53) Which resource has the least elastic supply? A) labor B) capital C) : 1241619

53) Which resource has the least elastic supply?

A) labor

B) capital

C) land

D) money

E) taxes

54) A tax imposed on a resource’s income is paid by both the resource’s owners and the resource’s employers, except for a tax

A) on labor income.

B) on the income of capital.

C) on land rent.

D) that is imposed on employers.

E) that is imposed on employees.

55) If highly paid entertainers prefer to perform and would do so even if their pay were much lower, a tax of half of the entertainers’ incomes would do which of the following?

A) decrease the amount of entertaining done by moving along a given labor supply curve

B) decrease the entertainers’ supply of performances

C) collect no taxes at all

D) not change the quantity supplied of performances

E) increase the entertainers’ supply of performances as they work more to make up the income they lose in taxes

56) Because the supply of land is perfectly inelastic, a tax on land income

A) is paid entirely by the suppliers.

B) is paid entirely by the demanders.

C) is shared equally between the suppliers and the demanders.

D) is shared, but not equally, between the suppliers and the demanders.

E) creates a deadweight loss.

57) A tax on the income from land or other resource with a perfectly inelastic supply

A) is efficient because it does not decrease the equilibrium quantity.

B) has no deadweight loss.

C) is paid entirely by the owner.

D) Only answers A and B are correct.

E) Answers A, B, and C are correct.

58) Because the supply of land is perfectly inelastic, when governments tax land, the tax

A) creates a deadweight loss because the supply is fixed.

B) decreases both the demand for and the supply of land.

C) creates no deadweight loss because the equilibrium quantity is the same as without the tax.

D) increases the supply of land because the landlord pays all of the tax.

E) decreases the supply of land because the landlord pays all of the tax.

59) From the standpoint of efficiency, imposing a tax on the income from what type of resource is best because it creates the least inefficiency?

A) a resource with a perfectly elastic supply

B) a resource with a perfectly elastic demand

C) a resource that earns a high reward

D) a resource with a fixed supply

E) a resource that earns a low reward

60) If the Social Security tax imposed on employers increases, then

A) firms’ demand for labor increases.

B) workers’ supply of labor increases.

C) firms’ demand for labor decreases.

D) firms’ demand for labor does not change.

E) the equilibrium quantity of employment increases.

61) Suppose the government increases the Social Security tax imposed on employers by 25 percent. This tax leads to

A) an increase in the supply of labor.

B) a decrease in the supply of labor.

C) a decrease in the demand for labor.

D) no change in the demand for labor.

E) a decrease in the supply of labor and an increase in the demand for labor.

62) Suppose the supply of labor is more inelastic than the demand for labor. Then, a Social Security tax imposed on employers

A) shifts the demand curve for labor leftward.

B) lowers the wage rate received by workers.

C) leads to the workers paying more of the tax than the employers.

D) Only answers B and C are correct.

E) Answers A, B, and C are correct.