Exam 4: Supply and Demand: Applications and Extensions

Figure 4-20 Refer to Figure 4-20. The amount of the tax per unit is

When a price ceiling prevents a higher market price from rationing a good,

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

The excess burden or deadweight loss of a tax refers to the

Figure 4-17 Refer to Figure 4-17. Suppose a price ceiling of $4.50 is imposed. As a result,

Figure 4-16 Refer to Figure 4-16. Some policymakers have argued that the government should establish a "living wage." A living wage would provide workers a reasonable standard of living in their city or region. If a living wage of $10 per hour is established in the market pictured here, we would expect

If Sophia's tax liability increases from $10,000 to $15,000 when her income increases from $30,000 to $40,000, her marginal tax rate is

An income tax is proportional if

The City of Greenville needs to raise revenue. Alderman Black has proposed a $10 tax on red cars in the city, currently numbering 2,000. Mayor White, who wants more than $20,000 in revenue, proposes taxing these cars at $100 each. Councilwoman Bluestone goes even farther, suggesting a $1,000 per red car tax, arguing that her proposal will raise $2 million. If maximizing tax revenue is the only consideration, which proposal should pass? Why?

Figure 4-25 Refer to Figure 4-25. The price that sellers receive after the tax is imposed is

Figure 4-1 Figure 4-1 illustrates the market for compact discs. If the government imposes a price floor of $25 for compact discs, which of the following will be true?

A subsidy is defined as

Use the figure below illustrating the impact of an excise tax to answer the following question(s). Figure 4-6 The revenue generated by the tax illustrated in Figure 4-6 is given by the area

The market pricing system corrects an excess supply by

If the demand for a good is highly inelastic, a tax on the good

If the federal government began granting a subsidy of 10 cents per apple to apple growers and as a result the price of apples to consumers falls by 8 cents,

Use the figure below to answer the following question(s). Figure 4-8 Refer to Figure 4-8. Which of the following is true?

Which of the following examples illustrates a progressive income tax?

Rent control applies to about two-thirds of the private rental housing in New York City. Economic theory suggests that the below-equilibrium prices established by rent controls would

Data from the effects of the substantial tax rate reductions in the 1980s