Exam 8: Application: the Costs of Taxation

Table 8-1 -Refer to Table 8-1. Suppose the government is considering levying a tax in one or more of the markets described in the table. Which of the markets will allow the government to minimize the deadweight loss(es) from the tax?

Figure 8-24. The figure represents the relationship between the size of a tax and the tax revenue raised by that tax. -Refer to Figure 8-24. Tax revenue would

Deadweight loss measures the loss

Figure 8-9 The vertical distance between points A and C represents a tax in the market. -Refer to Figure 8-9. The producer surplus without the tax is

Figure 8-13 -Refer to Figure 8-13. Suppose the government places a $5 per-unit tax on this good. The tax causes the price paid by buyers to

Figure 8-12 -Refer to Figure 8-12. Suppose a $3 per-unit tax is placed on this good. The tax causes the price received by sellers to

The deadweight loss from a tax of $2 per unit will be smallest in a market with

Figure 8-26 -Refer to Figure 8-26. How much is producer surplus at the market equilibrium?

The deadweight loss from a tax of $x per unit will be smallest in a market

Figure 8-7 The vertical distance between points A and B represents a tax in the market. -Refer to Figure 8-7. Suppose a 20th unit of the good were sold by a seller to a buyer. Which of the following statements is correct?

Figure 8-4 The vertical distance between points A and B represents a tax in the market. -Refer to Figure 8-4. The price that buyers effectively pay after the tax is imposed is

When a country is on the downward-sloping side of the Laffer curves, a cut in the tax rate will

Suppose the government places a per-unit tax on a good. The smaller the price elasticities of demand and supply for the good, the

Suppose a tax of $1 per unit is imposed on a good. The more elastic the supply of the good, other things equal, the

Figure 8-25 -Refer to Figure 8-25. Suppose the government places a $4 tax per unit on this good. What price will consumers pay for the good after the tax is imposed?

Figure 8-13 -Refer to Figure 8-13. Suppose the government places a $5 per-unit tax on this good. The consumer surplus after this tax is

Which of the following is a tax on labor?

Figure 8-5 Suppose that the government imposes a tax of P3 - P1. -Refer to Figure 8-5. After the tax is levied, producer surplus is represented by area

When a tax is levied on a good,

The Laffer curve illustrates that