8. To fully understand how taxes affect economic well-being, what must we do? as
ID: 1158061 • Letter: 8
Question
8. To fully understand how taxes affect economic well-being, what must we do? assume that economic well-being is not affected if all tax revenue is spent on goods and services for the Canadian public know the dollar amount of all taxes raised in the country each year compare the reduced welfare of buyers and sellers to the amount of government revenue raised compare the expenditures of the provincial governments with that of the federal govern- ment a b. c. d. 5. At the equilibrium price, which buyers will purchase the good? those who value the good at more than the price b. a those who value the good at less than the price those who have the money to buy the good d. C. those who consider the good a necessity 6. Orange juice and apple juice are substitutes. Suppose bad weather sharply reduced the orange harvest. What would the impact be? lus in the market for orange juice but decrease producer surplus in a increase consumer the market for apple juice b. increase consumer surplus in the market for orange juice and increase producer surplus in the market for apple juice c. decrease consumer surplus in the market for orange juice but increase producer surplus in the market for apple juice d. decrease consumer surplus in the market for orange juice and decrease producer surplus in the market for apple juice 7. What will result if production is moved from a high-cost producer to a low-cost producer? lower total surplus a b. higher total surplus c. lower producer surplus d. higher producer surplus but lower consumer surplus 15. What does the Laffer curve do? a b. c. d. It relates income tax rates to total income taxes collected. It relates income to unemployment. It relates tax rates to deadweight welfare losses It relates government welfare payments to the birth rate.Explanation / Answer
8. Ans : c ) Compare the reduced welfare of buyers and sellers to the amount of government revenue raised.
5. Ans : a ) Those who value the good at more than the price.
6. Ans : c ) Decrease consumer surplus in the market for orange juice and increase producer surplus in the market for apple juice.
Explanation :
The price of orange will increase due to less harvest of orange . As a result the price of orange juice will increase , because the orange is used as a input for making orange juice. So the consumer surplus will decrease in the market of orange juice . The demand for apple juice will increase , which leads more producer surplus in the market for apple juice.
7. Ans: b ) Higher total surplus.
15. Ans: a ) It relates income tax rates to total income taxes collected.
Explanation :
Laffer curve represents the relationship between tax rates and total revenue collected from the taxes by the government.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.