Question : 11) The demand curve for pizza downward sloping and the : 1241634

 

11) 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

 

12) 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.

13) 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.

 

14) 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.

 

15) 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.

16) 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.

 

17) 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.

18) 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.

 

19) 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.

 

20) The above figure shows the market for gourmet ice cream. In effort to reduce obesity, government places a $2 tax per gallon on suppliers in this market, shifting the supply curve from S0 to S1. The quantity of ice cream consumed before the tax is ________ gallons and the quantity consumed after the tax is ________ gallons.

A) 300,000; 200,000

B) 200,000; 250,000

C) 250,000; 200,000

D) 200,000; 300,000

E) 200,000; 200,000

 

21) The above figure shows the market for gourmet ice cream. In effort to reduce obesity, government places a $2 tax per gallon on suppliers in this market, shifting the supply curve from S0 to S1. The total tax revenue is equal to

A) $400,000.

B) $800,000.

C) $500,000.

D) $200,000.

E) More information is needed to determine the total tax revenue.

22) The above figure shows the market for gourmet ice cream. In effort to reduce obesity, government places a $2 tax per gallon on suppliers in this market, shifting the supply curve from S0 to S1. The tax incidence is

A) split equally between consumers and producers, each paying $1 per gallon.

B) split equally between consumers and producers, each paying $2 per gallon.

C) such that consumers pay $2 per gallon and producers pay $1 per gallon.

D) such that consumers pay $1 per gallon and producers pay $2 per gallon.

E) such that producers pay all of the tax.

 

 

 

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