Exam 8: Application: the Costs of Taxation

Figure 8-5 -Refer to Figure 8-5.What would happen to consumer surplus if the tax were imposed on the buyer

Figure 8-6 -Refer to Figure 8-6.What was producer surplus before the tax

Figure 8-1 ​ -Refer to Figure 8-1.Which area represents total economic surplus

What does the Laffer curve do

Figure 8-5 -Refer to Figure 8-5.If the tax is imposed on the buyer,what price would the sellers receive for their product

If the size of a tax doubles,the deadweight loss rises by a factor of six.

What is the relationship between the deadweight economic loss and tax rates

What should be used to analyze economic well-being in an economy

What does the area between the supply and demand curves up to the equilibrium quantity represent

Scenario 8-2 Lincoln offers to do Katelyn's housework for $80 per week.Katelyn's opportunity cost of doing housework is $100 per week, and Lincoln's opportunity cost of doing housework is $60 per week. -Refer to Scenario 8-2.What is the total gain in welfare due to the transaction described above

The deadweight loss of a tax rises even more rapidly than the size of the tax.

If a tax did not induce buyers or sellers to change their behaviour,it would not cause a deadweight loss.

How is the benefit received by sellers in a market measured

Figure 8-3 -Refer to Figure 8-3.What is the per-unit burden of the tax on buyers

Figure 8-5 -Refer to Figure 8-5.What would happen to producer surplus if the tax were imposed on the seller

What happens when people are given more freedom to choose the date of their retirement

When a tax is levied on a good,how will the quantity sold and price of the good change

Assume that the demand for salt is relatively inelastic and that the demand for snowboards is relatively elastic.If a tax is levied on both goods,what is the deadweight loss for snowboards relative tothe deadweight loss for salt

Which of the following taxes would likely have the smallest deadweight loss

What effect does a tax on a good have on prices