week4_ps - Principles of Economics Problem Set for Week 4...

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Principles of Economics Problem Set for Week 4 Due: online 10pm Mar.22, Tuesday I. Choose one answer that fits the best. (4 points each for questions 1- 16, total 64 points) 1. A tax on a good A a. raises the price buyers pay and lowers the price sellers receive. b. raises both the price buyers pay and the price sellers receive. c. lowers both the price buyers pay and the price sellers receive. d. lowers the price buyers pay and raises the price sellers receive. 2. If the supply of a good is relatively elastic, changing the price causes C a. a relatively small change in the amounts that buyers are willing to buy. b. a relatively small change in the amounts sellers are willing to sell. c. a relatively large change in the amounts sellers are willing to sell. d. no change in the amounts sellers are willing to sell. 3. As more people become self-employed and so can determine how many hours they work per week, we would expect that the deadweight loss from the Social Security Tax would A a. increase and the revenue generated from it would rise. b. decrease and the revenue generated from it would rise. c. increase and the revenue generated from it would fall. d. decrease and the revenue generated from it would fall.
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4. Which of the following ideas is the most plausible(r )? B a. Reducing a high tax rate is less likely to increase tax revenue than reducing a low tax rate. b. Reducing a high tax rate is more likely to increase tax revenue than reducing a low tax rate. c. Reducing a high tax rate will have the same effect on tax revenue as reducing a low tax rate. d. Reducing a tax rate can never increase tax revenue. 5. Ronald Reagan believed that reducing income tax rates would B a. cause government tax collections to decline. b. cause government tax collections to rise. c. cause the Federal deficit (and the national debt) to increase.
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This note was uploaded on 04/23/2010 for the course ECONOMICS 2312 taught by Professor William during the Spring '09 term at 東京大学.

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week4_ps - Principles of Economics Problem Set for Week 4...

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