Question : 81) Each citizen in Nexus City has to pay $20,000 : 1377452

 

81) Each citizen in Nexus City has to pay $20,000 as income tax. This is an example of a ________.

A) proportional income tax

B) progressive income tax

C) lump-sum tax

D) regressive income tax

82) A lump-sum tax is a(n) ________.

A) progressive tax

B) regressive tax

C) proportional tax

D) ordinal tax

83) Which of the following is true?

A) A lump-sum tax on a good reduces inequality.

B) A lump-sum tax requires the rich and the poor to pay the same amount of taxes.

C) A lump-sum tax requires the poor to pay a smaller percentage of their income as tax.

D) A lump-sum tax leads to a huge deadweight loss.

84) The incidence of a per-unit tax on a good is identical for buyers and sellers of the good if:

A) the buyers and sellers of the good are equally sensitive to price changes.

B) the elasticity of market demand exceeds the elasticity of market supply.

C) the market supply curve is flatter than the market demand curve.

D) the market demand curve is horizontal.

85) The tax incidence on buyers is higher if ________.

A) the buyers and sellers of a good are equally sensitive to price changes

B) the elasticity of the market demand curve is higher than the elasticity of the market supply curve

C) the elasticity of the market supply curve is higher than the elasticity of the market demand curve

D) the number of sellers in a market is larger than the number of buyers

86) The burden of a tax falls entirely on buyers if ________.

A) the price elasticity of demand is zero

B) the price elasticity of demand is greater than 1

C) the income elasticity of demand is high

D) the price elasticity of supply is zero.

87) The demand curve for pizza in Foodieland is vertical. If a tax is imposed on each pizza bought, ________.

A) the burden of the tax will fall entirely on the buyers

B) the burden of the tax will fall entirely on the sellers

C) the tax incidence on the sellers will be higher than that on the buyers

D) the deadweight loss due to taxation will be large

88) The burden of a tax falls entirely on sellers if ________.

A) the price elasticity of demand is zero

B) the price elasticity of supply is greater than 1

C) the income elasticity of demand is high

D) the price elasticity of supply is zero

89) The supply of milk in Nexus City is perfectly elastic. If a tax is imposed on each liter of milk sold, ________.

A) the burden of the tax will fall entirely on the sellers

B) the burden of the tax will fall entirely on the buyers

C) the tax incidence on the sellers is higher than that on the buyers

D) the deadweight loss due to taxation is zero

90) The tax incidence on sellers is higher if ________.

A) the buyers and sellers of a good are equally sensitive to price changes

B) the buyers are more sensitive to price changes than the sellers

C) the sellers are more sensitive to price changes than the buyers

D) the number of buyers in a market is larger than the number of sellers

91) The deadweight loss of taxation on a good is higher if ________.

A) the demand or the supply of the good are relatively price elastic

B) a progressive tax system is practiced

C) a low rate of tax is imposed on the sale of the good

D) there is only one seller in the market

92) The demand for chocolate is perfectly inelastic in Foodieland. If a tax is imposed on chocolate, ________.

A) the deadweight loss due to taxation will be high

B) the deadweight loss due to taxation will be one

C) consumers will stop consuming chocolate

D) the tax burden will fall entirely on buyers

 

 

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