Taxes & Trade!
2 years ago
douglashhs
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15 QuestionsShow answers
  • Question 1
    60 seconds
    Q. 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?
    answer choices
    P1, P3, V, T
    P2, P4, R, Z
    P2, P4, X, U
    P3, V, Q2, 0
  • Question 2
    60 seconds
    Q. Suppose 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? 
    answer choices
    The tax burden will fall equally on producers & consumers
    The tax burden will fall more on producers
    The tax burden will fall more on consumers
    The government will collect $0 in tax revenue
  • Question 3
    120 seconds
    Q. The 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 ___.
    answer choices
    B+K+L;  B
    B+C+K+L;  B+C+K+L
    C+H+I;  B+C
    B+C+G+H+I+J+K+L;  B+C
  • Question 4
    120 seconds
    Q. The 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 ___.
    answer choices
    K+L
    G+H+I+J
    G+J
    There is no deadweight loss created
  • Question 5
    60 seconds
    Q. In the accompanying graph, consumer surplus WITHOUT trade is equal to area ___.
    answer choices
    W+X+Y
    W
    Y
    W+X
  • Question 6
    60 seconds
    Q. In the accompanying graph, consumer surplus WITH trade is equal to area ___.
    answer choices
    W+X+Y
    W
    Y
    W+X
  • Question 7
    60 seconds
    Q. In the accompanying graph, producer surplus WITHOUT trade is equal to area ___.
    answer choices
    Y
    X+Y+Z
    W+X+Y
    X+Y
  • Question 8
    60 seconds
    Q. In the accompanying graph, producer surplus WITH trade is equal to area ___.
    answer choices
    Y
    X+Y+Z
    W+X+Y
    X+Y
  • Question 9
    60 seconds
    Q. In the accompanying graph, consumer surplus WITHOUT trade is equal to area ___.
    answer choices
    W+X+Y
    Z
    W+X+Z
    W
  • Question 10
    60 seconds
    Q. In the accompanying graph, consumer surplus WITH trade is equal to area ___.
    answer choices
    W+X+Y
    Z
    W+X+Z
    W
  • Question 11
    60 seconds
    Q. In the accompanying graph, producer surplus WITHOUT trade is equal to area ___.
    answer choices
    X+Y+Z
    W+X+Y
    X+Y
    Y
  • Question 12
    60 seconds
    Q. In the accompanying graph, producer surplus WITH trade is equal to area ___.
    answer choices
    X+Y+Z
    W+X+Y
    X+Y
    Y
  • Question 13
    60 seconds
    Q. An excise tax collected from the producers of a good:
    answer choices
    Shifts the supply curve upward
    Creates deadweight loss
    Has a similar effect as a quota
    All of the above
  • Question 14
    60 seconds
    Q. What is the price paid by consumers and the net price received by producers after the tax is paid, respectively?
    answer choices
    $11.00; $10.45
    $11.00; $10.00
    $10.45; $10.00
    $10.45; $9.45
  • Question 15
    60 seconds
    Q. According to the diagram, what is the amount of the tax?
    answer choices
    $0
    $0.45
    $1.00
    $1.45
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