Question :
61) A tax the income from land or other resource : 1226562
61) 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.
62) 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.
63) 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.
64) 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.
65) 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.
66) 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.
67) Consider a social security tax on workers versus a social security tax on employers. In comparing the outcomes of each type of tax, we see that
A) workers receive a higher take-home wage when the tax is imposed on employers than when the tax is imposed on workers.
B) workers receive the same take-home wage when the tax is imposed on workers and when the tax is imposed on employers.
C) employers pay a lower total wage when the tax is imposed on workers.
D) employment decreases by more when the tax is imposed on employers than when the tax is imposed on workers.
E) employment decreases by more when the tax is imposed on workers than when the tax is imposed on employers.
68) If Congress wanted to change the social security tax so that firms paid most of the tax, they would need to
A) change the tax laws so that all of the social security tax was imposed on firms.
B) change the tax laws so that all of the social security tax was imposed on workers.
C) change the tax laws so that more than 50 percent of the social security tax was imposed on firms.
D) change the tax laws so that more than 50 percent of the social security tax was imposed on workers.
E) None of the above because the incidence of the social security tax does not depend on the tax laws but instead depends on the elasticities of the demand for labor and the supply of labor.
69) For 2011, the federal government reduced the Social Security tax on workers by 2 percentage points. This will likely cause
A) an increase in the quantity of workers employed and a decrease in deadweight loss.
B) an increase in the quantity of workers employed and an increase in deadweight loss.
C) a decrease in the quantity of workers employed and a decrease in deadweight loss.
D) a decrease in the quantity of workers employed and an increase in deadweight loss.
E) no change in the quantity of workers employed since the demand for labor is more elastic than the supply of labor.
70) In 2010, Social Security taxes of over 11 percent were imposed on all income up to $104,000. For income that exceeded $104,000, no Social Security tax was imposed. Hence the Social Security tax is a
A) progressive tax.
B) proportional tax.
C) regressive tax.
D) fair-incidence tax.
E) type of tax that is impossible to determine without more information.
