Question :
41.Thedecreaseintotalsurplusthatresultsfromamarketdistortion,suchasatax,iscalleda
a.wedgeloss.
b.revenueloss.
c.deadweightloss.
d.consumersurplusloss.
: 1262596
41.Thedecreaseintotalsurplusthatresultsfromamarketdistortion,suchasatax,iscalleda
a.wedgeloss.
b.revenueloss.
c.deadweightloss.
d.consumersurplusloss.
42.Ataxonagood
a.givesbuyersanincentivetobuylessofthegoodthantheyotherwisewouldbuy.
b.givessellersanincentivetoproducemoreofthegoodthantheyotherwisewouldproduce.
c.createsabenefittothegovernment,thesizeofwhichexceedsthelossinsurplustobuyersandsellers.
d.Alloftheabovearecorrect.
43.Whenthepriceofagoodismeasuredindollars,thenthesizeofthedeadweightlossthatresultsfromtaxingthatgoodismeasuredin
a.unitsofthegoodthatisbeingtaxed.
b.unitsofarelatedgoodthatisnotbeingtaxed.
c.dollars.
d.percentagechange.
44.Whenthegovernmentplacesataxonaproduct,thecostofthetaxtobuyersandsellers
a.islessthantherevenueraisedfromthetaxbythegovernment.
b.isequaltotherevenueraisedfromthetaxbythegovernment.
c.exceedstherevenueraisedfromthetaxbythegovernment.
d.Withoutadditionalinformation,suchastheelasticityofdemandforthisproduct,itisimpossibletocomparethecostofataxtobuyersandsellerswithtaxrevenue.
45.Relativetoasituationinwhichgasolineisnottaxed,theimpositionofataxongasolinecausesthequantityofgasolinedemandedto
a.decreaseandthequantityofgasolinesuppliedtodecrease.
b.decreaseandthequantityofgasolinesuppliedtoincrease.
c.increaseandthequantityofgasolinesuppliedtodecrease.
d.increaseandthequantityofgasolinesuppliedtoincrease.
46.Whichof the followingquantitiesdecreaseinresponsetoataxonagood?
a.theequilibriumquantityinthemarketforthegood,theeffectivepriceofthegoodpaidbybuyers,andconsumersurplus
b.theequilibriumquantityinthemarketforthegood,producersurplus,andthewell-beingofbuyersofthegood
c.theeffectivepricereceivedbysellersofthegood,thewedgebetweentheeffectivepricepaidbybuyersandtheeffectivepricereceivedbysellers,andconsumersurplus
d.Noneoftheaboveisnecessarilycorrectunlessweknowwhetherthetaxisleviedonbuyersoronsellers.
47.Foragoodthatistaxed,theareaontherelevantsupplyanddemandgraphthatrepresentsgovernment’staxrevenueisa
a.triangle.
b.rectangle.
c.trapezoid.
d.Noneoftheaboveiscorrect?government’staxrevenueistheareabetweenthesupplyanddemandcurves,abovethehorizontalaxis,andbelowtheeffectivepricetobuyers
48.Foragoodthatistaxed,theareaontherelevantsupplyanddemandgraphthatrepresentsgovernment’staxrevenueis
a.smallerthantheareathatrepresentsthelossofconsumersurplusandproducersurpluscausedbythetax.
b.boundedbythesupplycurve,thedemandcurve,theeffectivepricepaidbybuyers,andtheeffectivepricereceivedbysellers.
c.arighttriangle.
d.atriangle,butnotnecessarilyarighttriangle.
49.Totalsurpluswithataxisequalto
a.consumersurplusplusproducersurplus.
b.consumersurplusminusproducersurplus.
c.consumersurplusplusproducersurplusminustaxrevenue.
d.consumersurplusplusproducersurplusplustaxrevenue.
50.Taxescausedeadweightlossesbecausethey
a.leadtolossesinsurplusforconsumersandforproducersthat,whentakentogether,exceedtaxrevenuecollectedbythegovernment.
b.distortincentivestobothbuyersandsellers.
c.preventbuyersandsellersfromrealizingsomeofthegainsfromtrade.
d.Alloftheabovearecorrect.