Question :
11) The imposition of ________ shifts the labor demand curve : 1241627
11) The imposition of ________ shifts the labor demand curve downward.
A) a sales tax
B) an income tax
C) a Social Security tax on workers
D) a Social Security tax on employers
E) Both answers C and D are correct.
12) ________ tax is progressive if the ________.
A) An income; average tax rate is constant as income increases
B) An income; average tax rate increases with income
C) Any; average tax rate is constant as income increases
D) Any; average tax rate decreases as income increases
E) A Social Security; tax is imposed on employers rather than workers
13) To levy a tax based on the benefits principle to pay for a bridge, the government
A) would impose an income tax instead of a Social Security tax on workers.
B) would impose a Social Security tax on workers instead of an income tax.
C) needs to know each person’s benefit from the bridge.
D) needs to be able to calculate the deadweight loss of a tax.
E) cannot impose the tax on anyone who uses the bridge.
14) Which of the following taxes guarantees vertical equity?
i.income tax
ii.Social Security tax on workers
iii.Social Security tax on employers
A) i only
B) i and ii
C) ii and iii
D) iii only
E) None of the above taxes guarantees vertical equity.
15) Regardless of whether a tax is imposed on buyers or sellers, it has the same effects: In general, the price paid by the buyers ________ and the price received by the sellers ________.
A) rises; falls
B) rises; rises
C) falls; rises
D) falls; remains the same
E) rises; remains the same
16) A tax on labor income ________ the wage rate paid by employers, ________ the wage rate received by employees, and ________ a deadweight loss.
A) rise; fall; creates
B) rise; rise; creates
C) rise; rise; does not create
D) fall; fall; does not create
E) fall; fall; creates
17) Most of a tax hike will be paid by workers if the demand for labor is ________ and the supply of labor is ________.
A) elastic; inelastic
B) elastic; elastic
C) inelastic; inelastic
D) inelastic; stable
E) elastic; stable
18) For a given elasticity of supply, the more ________ the demand for the good, the share of the tax paid by the buyers is ________.
A) inelastic; larger
B) inelastic; smaller
C) elastic; larger
D) elastic; smaller
E) elastic; the same
19) If a $2.00 tax per dose of insulin raises the price paid by the buyers by $2.00, then the demand for insulin is perfectly ________ and the buyers pay ________ the tax.
A) inelastic; all
B) inelastic; some of
C) inelastic; none of
D) elastic; all
E) elastic; none of
20) The demand curve for blue marker pens horizontal so the demand is perfectly ________. A tax of 50 cents lowers the price received by the seller by 50 cents and the seller pays ________ the tax.
A) elastic; all
B) inelastic; all
C) inelastic; some of
D) inelastic; none of
E) elastic; none of
21) If a tax of 5 cents a tomato lowers the price received by tomato sellers by 5 cents a tomato, then the supply of tomatoes is perfectly ________ and the seller pays ________ the tax.
A) inelastic; all
B) elastic; all
C) inelastic; some of
D) inelastic; none of
E) elastic; none of
22) The supply curve of sand is horizontal so the supply of sand is perfectly ________. A tax of 1 cent a pound increases the price by 1 cent a pound and the buyer pays ________ the tax. The tax is therefore ________.
A) elastic; all; inefficient
B) elastic; none; inefficient
C) elastic; all, efficient
D) inelastic; all; inefficient
E) inelastic; none; efficient
