Exam 4: A : Supply and Demand: Applications and Extensions

Use the figure below to answer the following question(s). Figure 4-11 -Refer to Figure 4-11. On the Laffer curve shown, tax revenue could be increased by

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

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

Which one of the following will most likely be harmed by legislation exempting teenagers from the minimum wage?

If Lex's income increases from $30,000 to $40,000 and his tax liability increases from $6,000 to $10,000, which of the following is true?

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 point b and a $.40 excise tax is illustrated. What does the triangular area abc represent?

If Heather'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

Other things constant, how will a decrease in the wages of teenagers affect the market for fast food hamburgers?

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

A price floor that sets the price of a good above market equilibrium will cause

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

Economic analysis indicates minimum wage legislation has

In the two decades following 1990, subsidized federal loans per full-time student more than tripled. Economic analysis indicates that this expansion in subsidies

When a subsidy program allocates subsidies to a subset of the population, the result is greater demand and higher prices in the market where purchases are subsidized, raising costs for

If the supply of health care services is highly inelastic, programs that subsidize the cost of purchasing medical services will

The statutory incidence (or burden) of a tax refers to

The Laffer curve illustrates the relationship between

When a tax is levied on the sale of an item,

An income tax is progressive if the

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?