Question :
21.Inwhichofthefollowinginstanceswouldthedeadweightlossofthetaxonairlineticketsincreasebyafactorof9?
a.Thetaxonairlineticketsincreasesfrom$20perticketto$60perticket.
b.Thetaxonairlineticke : 1262575
21.Inwhichofthefollowinginstanceswouldthedeadweightlossofthetaxonairlineticketsincreasebyafactorof9?
a.Thetaxonairlineticketsincreasesfrom$20perticketto$60perticket.
b.Thetaxonairlineticketsincreasesfrom$20perticketto$90perticket.
c.Thetaxonairlineticketsincreasesfrom$15perticketto$60perticket.
d.Thetaxonairlineticketsincreasesfrom$15perticketto$135perticket.
22.Inwhichofthefollowinginstanceswouldthedeadweightlossofthetaxoncartonsofcigarettesincreasebyafactorof9?
a.Thetaxoncartonsofcigarettesincreasesfrom$10to$11.11.
b.Thetaxoncartonsofcigarettesincreasesfrom$10to$20.
c.Thetaxoncartonsofcigarettesincreasesfrom$10to$30.
d.Thetaxoncartonsofcigarettesincreasesfrom$10to$90.
23.Whichofthefollowingeventsisconsistentwithanincreaseinthedeadweightlossofthegasolinetaxfrom$30millionto$120million?
a.Thetaxongasolineincreasesfrom$0.30pergallonto$0.45pergallon.
b.Thetaxongasolineincreasesfrom$0.30pergallonto$0.60pergallon.
c.Thetaxongasolineincreasesfrom$0.25pergallonto$0.45pergallon.
d.Thetaxongasolineincreasesfrom$0.25pergallonto$1.00pergallon.
24.AssumethatforgoodXthesupplycurveforagoodisatypical,upward-slopingstraightline,andthedemandcurveisatypicaldownward-slopingstraightline.Ifthegoodistaxed,andthetaxisdoubled,the
a.baseofthetrianglethatrepresentsthedeadweightlossquadruples.
b.heightofthetrianglethatrepresentsthedeadweightlossdoubles.
c.deadweightlossofthetaxdoubles.
d.Alloftheabovearecorrect.
25.AssumethatforgoodXthesupplycurveforagoodisatypical,upward-slopingstraightline,andthedemandcurveisatypicaldownward-slopingstraightline.Ifthegoodistaxed,andthetaxisdoubled,the
a.baseofthetrianglethatrepresentsthedeadweightlossdoubles.
b.heightofthetrianglethatrepresentsthedeadweightlossdoubles.
c.deadweightlossofthetaxquadruples.
d.Alloftheabovearecorrect.
26.AssumethatforgoodXthesupplycurveforagoodisatypical,upward-slopingstraightline,andthedemandcurveisatypicaldownward-slopingstraightline.Ifthegoodistaxed,andthetaxistripled,the
a.baseofthetrianglethatrepresentsthedeadweightlosstriples.
b.heightofthetrianglethatrepresentsthedeadweightlosstriples.
c.deadweightlossofthetaxincreasesbyafactorofnine.
d.Alloftheabovearecorrect.
27.Supposethetaxongasolineisdecreasedfrom$0.60pergallonto$0.40pergallon.Asaresult,
a.taxrevenuenecessarilydecreases.
b.thedeadweightlossofthetaxnecessarilydecreases.
c.thedemandcurveforgasolinenecessarilybecomessteeper.
d.thesupplycurveforgasolinenecessarilybecomesflatter.
28.Supposethatthemarketforlarge,64-ouncesoftdrinksinthetownofPudgyvilleischaracterizedbyatypical,downward-sloping,lineardemandcurveandatypical,upward-sloping,linearsupplycurve.Themarketisinitiallyinequilibriumwith1,000softdrinkssoldperday.Thenewly-electedMayorofPudgyvillewantstotax64-ouncesoftdrinks.Sheisconsideringeithera$0.10taxora$0.30tax.Herchiefeconomicadvisorestimatesthatthenumberofsoftdrinkssoldaftera$0.10taxwillbe900andaftera$0.30taxwillbe500.Whichtaxisbetter?
a.The$0.10taxisbetterbecauseitraisesmorerevenueandcreatesalowerdeadweightlossthanthe$0.30tax.
b.The$0.30taxisbetterbecauseitraisesmorerevenueandcreatesalowerdeadweightlossthanthe$0.10tax.
c.Itisnotclearwhichtaxisbetterbecausealthoughthe$0.30taxraisesmoretaxrevenues,itcreatesalargerdeadweightlossthanthe$0.10tax.
d.Itisnotclearwhichtaxisbetterbecausealthoughthe$0.10taxraisesmoretaxrevenues,itcreatesalargerdeadweightlossthanthe$0.30tax.
29.Withlineardemandandsupplycurvesinamarket,supposeataxof$0.20perunitonagoodcreatesadeadweightlossof$40.Ifthetaxisincreasedto$0.50perunit,thedeadweightlossfromthenewtaxwillbe
a.$200.
b.$250.
c.$475.
d.$625.
30.Thehigheracountry’staxrates,themorelikelythatcountrywillbe
a.atthetopoftheLaffercurve.
b.onthepositivelyslopedpartoftheLaffercurve.
c.onthenegativelyslopedpartoftheLaffercurve.
d.experiencingsmalldeadweightlosses.