Have an account?
Skip to Content
Build your own quiz
15 questions
Show Answers
See Preview
- 1. Multiple Choice
In the graph shown, S is the original supply curve and S1 is the supply curve including an excise tax. What is the area that represents the tax revenue to the government?P1, P3, V, TP2, P4, R, ZP2, P4, X, UP3, V, Q2, 0 - 2. Multiple ChoiceSuppose that the demand for soft drinks is price elastic and the supply is price inelastic. If the government imposes a sales tax on soft drinks, which of the following will occur in the short run?The tax burden will fall equally on producers & consumersThe tax burden will fall more on producersThe tax burden will fall more on consumersThe government will collect $0 in tax revenue
- 3. Multiple ChoiceThe world price is Pw is equal to $100. When the economy moves from autarky to free trade, consumer surplus rises by area ___ and producer surplus falls by area ___.B+K+L; BB+C+K+L; B+C+K+LC+H+I; B+CB+C+G+H+I+J+K+L; B+C
- 4. Multiple ChoiceThe world price is Pw is equal to $100. The government imposes a tariff of $20/calculator. Compared to free trade, the tariff leads to a deadweight loss equal to area ___.K+LG+H+I+JG+JThere is no deadweight loss created
- 5. Multiple ChoiceIn the accompanying graph, consumer surplus WITHOUT trade is equal to area ___.W+X+YWYW+X
- 6. Multiple ChoiceIn the accompanying graph, consumer surplus WITH trade is equal to area ___.W+X+YWYW+X
- 7. Multiple ChoiceIn the accompanying graph, producer surplus WITHOUT trade is equal to area ___.YX+Y+ZW+X+YX+Y
- 8. Multiple ChoiceIn the accompanying graph, producer surplus WITH trade is equal to area ___.YX+Y+ZW+X+YX+Y
- 9. Multiple ChoiceIn the accompanying graph, consumer surplus WITHOUT trade is equal to area ___.W+X+YZW+X+ZW
- 10. Multiple ChoiceIn the accompanying graph, consumer surplus WITH trade is equal to area ___.W+X+YZW+X+ZW
- 11. Multiple ChoiceIn the accompanying graph, producer surplus WITHOUT trade is equal to area ___.X+Y+ZW+X+YX+YY
- 12. Multiple ChoiceIn the accompanying graph, producer surplus WITH trade is equal to area ___.X+Y+ZW+X+YX+YY
- 13. Multiple ChoiceAn excise tax collected from the producers of a good:Shifts the supply curve upwardCreates deadweight lossHas a similar effect as a quotaAll of the above
- 14. Multiple ChoiceWhat is the price paid by consumers and the net price received by producers after the tax is paid, respectively?$11.00; $10.45$11.00; $10.00$10.45; $10.00$10.45; $9.45
- 15. Multiple ChoiceAccording to the diagram, what is the amount of the tax?$0$0.45$1.00$1.45
- Answer choicesTagsAnswer choicesTags