Exam 4: Supply and Demand: Applications and Extensions

A substantial revision of the income tax code that made business and personal tax returns much easier to complete would tend to cause which of the following changes in the labor market for accountants?

Figure 4-20 -Refer to Figure 4-20. As the figure is drawn, who sends the tax payments to the government?

Other things constant, a decrease in the demand for hair dryers will

Which of the following is the most likely result of an increase in the minimum wage?

When a price ceiling is imposed below the equilibrium price of a commodity,

Figure 4-23 -Refer to Figure 4-23. In which market will the majority of the tax burden fall on the seller?

Which of the following would tend to increase the wage of coal miners?

After the ban on the production and sale of alcohol ended in 1933,

An income tax is progressive if the

Figure 4-5 -Figure 4-5 represents the market for gasoline before and after a per-gallon tax. What does the triangular area ABC represent?

If Aisha were to get a $3,000 bonus from her employer, which of the following tax rates would most accurately reflect the percent of this additional income that she would owe in taxes?

Figure 4-17 -Refer to Figure 4-17. Suppose a price floor of $7.00 is imposed. As a result,

Figure 4-24 -Refer to Figure 4-24. The per unit burden of the tax on buyers is

Suppose an excise tax is imposed on two products X and Y, both of which have identical supply elasticities. The demand for good X is highly elastic, while the demand for good Y is highly inelastic. The deadweight loss (or excess burden) will be

When a price floor is above the equilibrium price,

If Olivia's income increases from $40,000 to $50,000 and her tax liability increases from $6,000 to $9,000, which of the following is true?

Use the figure below to answer the following question(s). Figure 4-7 -Refer to Figure 4-7. Which of the following is true for the tax illustrated?

In the supply and demand model, a subsidy granted to buyers is illustrated by

When a government subsidy is granted to the buyers of a product, sellers can end up capturing some of the benefit because

If a government-imposed price floor legally sets the price of milk above market equilibrium, which of the following will most likely happen?