Question
Use the figure below to answer the following question(s).
Refer to Figure 4-7. The supply curve S1 and the demand curve D indicate initial conditions in the market for gasoline. A $.60-per-gallon excise tax on gasoline is levied, which shifts the supply curve from S1 to S2. Imposing the tax causes the equilibrium price of gasoline to increase from
Refer to Figure 4-7. The supply curve S1 and the demand curve D indicate initial conditions in the market for gasoline. A $.60-per-gallon excise tax on gasoline is levied, which shifts the supply curve from S1 to S2. Which of the following states the actual burden of the tax?
Use the figure below to answer the following question(s).
Refer to Figure 4-9. The market for gasoline was initially in equilibrium at point b and a $.40 excise tax is illustrated. Which of the following states the actual burden of the tax?
Refer to Figure 4-17. Suppose a price floor of $7.00 is imposed. As a result,
Refer to Figure 4-25. The equilibrium price before the tax is imposed is
A) The efficient price would be higher than $84.
B) The efficient price would be lower than $84.
C) The efficient price would also be $84.
D) The efficient output would be greater than 320 units.
If a government price control succeeds in affecting price, it can be expected to lead to a corresponding decrease in the quantity of sales only if the price is forced down. decrease in the quantity of sales if the price is forced down and an increase in the volume of sales if the price is forced up. decrease in the quantity of sales whether the price is forced up or down. increase in the quantity of sales whether the price is forced up or down. When a price floor is imposed above the equilibrium price of a commodity, quantity demanded will be greater than quantity supplied for the good. the quantity demanded by consumers will be greater than at the equilibrium price. a shortage of the good will develop. a surplus of the good will develop. If Heather's tax liability increases from $10,000 to $13,500 when her income increases from $30,000 to $40,000, her marginal tax rate is 33 percent. 35 percent. 50 percent. 60 percent. According to the Laffer curve, an increase in tax rates will always cause tax revenues to increase. when marginal tax rates are high, an increase in tax rates is likely to cause tax revenues to increase. when marginal taxes are low, an increase in tax rates will probably cause tax revenues to decline. when marginal tax rates are high, a reduction in tax rates may increase tax revenue. When the government increased its involvement in rescue efforts on Mount McKinley (the tallest peak in North America), the number of mountain climbing deaths decreased slightly. decreased substantially. remained the same. increased. Use the figure below to answer the following question(s). Refer to Figure 4-7. The supply curve S1 and the demand curve D indicate initial conditions in the market for gasoline. A $.60-per-gallon excise tax on gasoline is levied, which shifts the supply curve from S1 to S2. Imposing the tax causes the equilibrium price of gasoline to increase from $.80 to $1.40. $.80 to $1.50. $.90 to $1.50. $.90 to $1.40. Refer to Figure 4-7. The supply curve S1 and the demand curve D indicate initial conditions in the market for gasoline. A $.60-per-gallon excise tax on gasoline is levied, which shifts the supply curve from S1 to S2. Which of the following states the actual burden of the tax? $.50 for buyers and $.10 for sellers $.50 for sellers and $.10 for buyers The entire $.60 falls on sellers. The entire $.60 falls on buyers. Use the figure below to answer the following question(s). Refer to Figure 4-9. The market for gasoline was initially in equilibrium at point b and a $.40 excise tax is illustrated. Which of the following states the actual burden of the tax? $.20 for buyers and $.20 for sellers $.30 for buyers and $.10 for sellers The entire $.40 falls on sellers. The entire $.40 falls on buyers. Refer to Figure 4-17. Suppose a price floor of $7.00 is imposed. As a result, buyers' total expenditure on the good decreases by $20.00. the supply curve will shift to the left so as to now pass through the point (Q = 40, P = $7.00). the quantity of the good demanded decreases by 20 units. the price of the good continues to serve as the rationing mechanism. Refer to Figure 4-25. The equilibrium price before the tax is imposed is P1 P2 P3 impossible to determine from the figure. Black markets that operate outside the legal system are often characterized by low profits for suppliers. lower opportunity costs for suppliers and buyers. decreased prices. the use of violence as a means of settling disputes. Suppose external costs are present in a market which results in the actual market price of $50 and market output of 800 units. How does this outcome compare to the efficient, ideal equilibrium? The efficient outcome would be greater than 800 units. The efficient outcome would be less than 800 units. The efficient outcome would also be 800 units. The efficient price would be less than $50. Suppose external costs are present in a market which results in the actual market price of $84 and market output of 320 units. How does this outcome compare to the efficient, ideal equilibrium? The efficient price would be higher than $84. The efficient price would be lower than $84. The efficient price would also be $84. The efficient output would be greater than 320 units.
Explanation / Answer
14 d
15 a
16 b
17 a
18 c
19 b
20 a
21 b
22c
23 a
24 c
25d
26 d
