Exam 6: Supply Demand and Government Policies: Taxes

How is the burden of a tax divided? (i)When the tax is levied on the sellers,the sellers bear a higher proportion of the tax burden. (ii)When the tax is levied on the buyers,the buyers bear a higher proportion of the tax burden. (iii)Regardless of whether the tax is levied on the buyers or the sellers,the buyers and sellers bear an equal proportion of the tax burden. (iv)Regardless of whether the tax is levied on the buyers or the sellers,the buyers and sellers bear some proportion of the tax burden.

Figure 6-25 -Refer to Figure 6-25.The amount of the tax per unit is

Suppose buyers of fountain drinks are required to send $0.50 to the government for every fountain drink they buy.Further,suppose this tax causes the effective price received by sellers of fountain drinks to fall by $0.20 per drink.Which of the following statements is correct?

When a tax is levied on buyers of tea,

If the government removes a tax on a good,then the price paid by buyers will

Figure 6-24 -Refer to Figure 6-24.The per-unit burden of the tax on buyers of the good is

A $2.00 tax levied on the sellers of birdhouses will shift the supply curve

A tax imposed on the sellers of a good will lower the

Figure 6-19 -Refer to Figure 6-19.Suppose a tax of $2 per unit is imposed on this market.Which of the following is correct?

Which of the following was not a result of the luxury tax imposed by Congress in 1990?

The incidence of a tax falls more heavily on

Figure 6-18 The vertical distance between points A and B represents the tax in the market. -Refer to Figure 6-18.The per-unit burden of the tax on sellers is

Figure 6-25 -Refer to Figure 6-25.The burden of the tax on sellers is

Figure 6-19 -Refer to Figure 6-19.Suppose a tax of $2 per unit is imposed on this market.How much will sellers receive per unit after the tax is imposed?

If the government passes a law requiring buyers of college textbooks to send $5 to the government for every textbook they buy,then

Which of the following causes the price paid by buyers to be different than the price received by sellers?

When a tax is imposed on the sellers of a good,the supply curve shifts

Suppose the government imposes a 25-cent tax on the buyers of incandescent light bulbs.Which of the following is not correct? The tax would

If the government levies a $5 tax per MP3 player on buyers of MP3 players,then the price paid by buyers of MP3 players would likely

When a tax is placed on the buyers of a product,buyers pay