Deck 8: 0: Sec 80 Mc Application the Cost of Taxation

Question 1

Which of the following tools help us evaluate how taxes affect economic well-being?
(i)
Consumer surplus
(ii)
Producer surplus
(iii)
Tax revenue
(iv)
Deadweight loss

A)(i)and (ii)only
B)(i), (ii),and (iii)only
C)(iii)and (iv)only
D)(i), (ii), (iii),and (iv)

Answer 1

D

Question 2

Who once said that taxes are the price we pay for a civilized society?

A)Aristotle
B)George Washington
C)Oliver Wendell Holmes,Jr.
D)Ronald Reagan

Answer 2

D

Question 3

Anger over British taxes played a significant role in bringing about the

A)election of John Adams as the second American president.
B)American Revolution.
C)War of 1812.
D)"no new taxes" clause in the U.S.Constitution.

Answer 3

C

Question 4

In 1776,the American Revolution was sparked by anger over

A)the extravagant lifestyle of British royalty.
B)the crimes of British soldiers stationed in the American colonies.
C)British taxes imposed on the American colonies.
D)the failure of the British to protect American colonists from attack by hostile Native Americans.

Question 5

To fully understand how taxes affect economic well-being,we must compare the

A)consumer surplus to the producer surplus.
B)price paid by buyers to the price received by sellers.
C)reduced welfare of buyers and sellers to the revenue raised by the government.
D)consumer surplus to the deadweight loss.