Question : 40) The above figure shows the labor market for land : 1226560

 

 

 

40) The above figure shows the labor market for land surveyors. Dave is a land surveyor. What is the tax incidence for this income tax?

A) Though the employer pays some of the tax, Dave pays more of the income tax than his employer.

B) Dave pays the same amount of the income tax as his employer.

C) While Dave pays some of tax, Dave pays less of the income tax than his employer.

D) Dave does not pay any tax.

E) Dave’s employer does not pay any tax.

 

41) The above figure shows the labor market for land surveyors. Dave is a land surveyor. What is the total income tax Dave pays each year?

A) $1,500

B) $4,500

C) $3,000

D) $40,500

E) $45,000

42) The above figure shows the labor market for land surveyors. Dave is a land surveyor. If there was no income tax, Dave would work ________ hours per year and the wage rate would be ________ per hour.

A) 2000; $28

B) 1500; $28

C) 1500; $27

D) 2000; $30

E) 1500; $30

 

43) The above figure shows the labor market for land surveyors. Dave is a land surveyor. With the income tax, Dave works ________ hours per year and his after-tax wage rate is ________ per hour.

A) 2000; $28

B) 1500; $28

C) 2000; $30

D) 1500; $30

E) 1500; $27

 

44) The above figure shows the labor market for land surveyors. Dave is a land surveyor. The total tax paid by Dave’s employer is equal to

A) area D + area F.

B) area D + area G.

C) area B + area C + area E + area F.

D) area B + area C.

E) area A.

 

45) The above figure shows the labor market for land surveyors. Dave is a land surveyor. The total tax paid by Dave is equal to

A) area B + area C.

B) area B + area C + area E + area F.

C) area E + area F.

D) area D + area G.

E) area A.

46) The above figure shows the labor market for land surveyors. The deadweight loss from the tax is equal to

A) area D + area F.

B) area D + area G.

C) area B + area C.

D) area B + area C + area E + area F.

E) area A.

 

47) The above figure shows the labor market for land surveyors. The total amount collected as taxes equals

A) area B + area C + area E + area F.

B) area D + area G.

C) area D + area F.

D) area B + area C.

E) area A.

 

48) Because the supply of capital is highly elastic, taxing the income from capital results in

i.firms that demand capital paying the greater share of the tax.

ii.a decrease in the equilibrium quantity of capital.

iii.a deadweight loss.

A) i only

B) ii only

C) i and iii

D) ii and iii

E) i, ii, and iii

49) If the supply of capital is perfectly ________ end up paying the tax on capital income.

A) elastic, lenders

B) elastic, firms that demand capital

C) inelastic, lenders

D) inelastic, firms that demand capital

E) unit elastic, firms that demand capital

 

50) If the supply of capital is perfectly elastic, a tax on capital income results in

A) a deadweight loss and lenders pay all of the tax.

B) a deadweight loss and borrowers (firms) pay all of the tax.

C) no deadweight loss and borrowers (firms) and lenders split the tax.

D) no deadweight loss and lenders pay all of the tax.

E) no deadweight loss and borrowers (firms) pay all of the tax.

 

 

 

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