Exam 4: Asupply and Demand: Applications and Extensions

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

Use the figure below to answer the following question(s). Figure 4-9 -Refer to Figure 4-9.The market for gasoline was initially in equilibrium at poit b.If a $.40 excise tax was imposed,

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

An excise tax levied on a product will impose a smaller relative burden on consumers (and a larger relative burden on sellers)when

Use the figure below to answer the following question(s). Figure 4-12 -Refer to Figure 4-12.The exhibit illustrates the impact of granting a subsidy on a particular good.Which of the following is true for this subsidy given the information provided in the exhibit?

Kathy works full time during the day as an economist and faces a 50 percent marginal tax rate.If Kathy were to get an offer to work a second job in the evenings doing consulting work for a local business for $10,000 per year,how much of this additional income would she be able to keep as net pay after taxes?

The presence of price controls in a market usually is an indication that

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

If Sally 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?

Deadweight losses are associated with

When the price of a good is legally set below the equilibrium level,a shortage often results.This shortage

Which of the following statements is true?

The tax rate that maximizes the revenue generated by a tax

Rent controls tend to cause persistent imbalances in the market for housing because

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

If the government wants to raise tax revenue and shift most of the tax burden to the consumers,it would impose a tax on a good with a

If there was an increase in the excise tax imposed on beer suppliers,what would be the effect on the equilibrium price and quantity of beer?

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?

Figure 4-20 -Refer to Figure 4-20.The price that sellers receive after the tax is imposed is

Figure 4-14 -In Figure 4-14,which of the following is true at the price ceiling,P?