Quiz_6_Answer_Key

Quiz_6_Answer_Key - If the government imposes a $1,000 tax...

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1) The tax incidence is the a) burden buyers have to absorb from a tax on goods and services b) burden sellers have to absorb from a tax on goods and services c) lost revenue the government endures from goods and services that are not taxed ) ivision of the burden of a tax bwteen the buyer and ller Time Limit: You must turn in your scantron with your PID when time is called. You may work with others. You may use class notes. No textbook; No internet resources. 1 point per question Quiz - 2/27/09 d) division of the burden of a tax bwteen the buyer and seller Answer: d), by definition in p.190 of the textbook 2) Neither the demand nor the supply of automobiles is perfectly elastic or inelastic.
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Unformatted text preview: If the government imposes a $1,000 tax on automobiles, then the price of an automobile a) Increase by $1,000 b) Increases by less than $1,000 c) Increased by more than $1,000 d) Decrease by less than $1,000 Answer: b) 3) The graph shows the market for tires. According to the graph, the government imposed a tax of ____ per tire. a) $10 b) $30 c) $40 d) $60 Answer: $30 4) According to the graph, buyers pay ____ of the tax. a) $10 b) $20 c) $30 d) $50 Answer: $10 5) According to the graph, the government collects _____. a) $20 b) $200 c) $400 d) $600 Answer: $600...
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Quiz_6_Answer_Key - If the government imposes a $1,000 tax...

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