Exam 4: Supply and Demand: Applications and Extensions

A progressive tax

Which of the following characterizations is correct?

The more elastic the supply of a product, the more likely it is that the

The benefit of a subsidy will go primarily to sellers when the

The more elastic the supply of a product, the more likely it is that the burden of a tax will

Figure 4-17 Refer to Figure 4-17. Which of the following price controls would cause a shortage of 10 units of the good?

Subsidy programs that provide benefits to well organized interest groups will

Which of the following generalizations about the burden of an excise tax is correct?

A tax imposed on the sellers of a good

Suppose the U.S. Government banned the sale and production of cigarettes. What are likely effects of this action on the market for cigarettes?

If the federal government placed a 50 cent per pack excise tax on cigarette manufacturers, and if as a result, the price to consumers of a pack of cigarettes went up by 40 cents, the

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

Figure 4-18 Refer to Figure 4-18. The price of the good would continue to serve as the rationing mechanism if

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

The more inelastic the demand for a product, the more likely that the actual benefit of a subsidy granted on the product will

If Joan pays $5,000 in taxes when she earns $20,000 and must pay $12,000 in taxes when she earns $30,000, she faces a marginal tax rate in this income range of

Which of the following statements is true?

Use the table below to choose the correct answer. For the income range illustrated, the tax shown here is

A price ceiling that sets the price of a good below market equilibrium will cause

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?