econ - problem set 4_ProblemSet

econ - problem set 4_ProblemSet - Question 1 Multiple...

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Question 1 Multiple Choice 5 of 5 point(s) Figure 8-5 Refer to Figure 8-5. What would happen to total surplus in this market if a tax were imposed? Your Answer: It would fall by $1500. Correct Answer: It would fall by $1500. Feedback: It would fall by $1500. Question 2 Multiple Choice 5 of 5 point(s) A tax placed on a product causes the price the buyer pays Your Answer: to be higher and the price the seller receives to be lower. Correct Answer: to be higher and the price the seller receives to be lower. Feedback: to be higher and the price the seller receives to be lower. Question 3 Multiple Choice 0 of 5 point(s)
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Figure 8-6 Refer to Figure 8-6. The reduction in consumer surplus caused by the tax would be Your Answer: [None Given] Correct Answer: $80. Feedback: $80 . Question 4 Multiple Choice 0 of 5 point(s) Figure 8-3 Refer to Figure 8-3. The amount of the tax imposed is Your Answer: [None Given] Correct Answer: $14.
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Feedback: $1 4 Question 5 Multiple Choice 0 of 5 point(s) Taxes on labor encourage all of the following EXCEPT Your Answer: [None Given] Correct Answer: workers to work overtime. Feedback: workers to work overtime. Question 6 Multiple Choice 0 of 5 point(s) When the government places a tax on a product Your Answer: [None Given] Correct Answer: the cost of the tax to buyers and sellers exceeds the revenue raised from the tax by the government. Feedback: the cost of the tax to buyers and sellers exceeds the revenue raised from the tax by the government. Question 7 Multiple Choice 0 of 5 point(s) Figure 8-5 Refer to Figure 8-5. If a tax is imposed in this market, total surplus would fall by Your Answer: [None Given] Correct Answer: $1500.
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$1500 . Question 8 Multiple Choice 0 of 5 point(s) The views held by Arthur Laffer and Ronald Reagan that cuts in tax rates would encourage people to increase the quantity of labor they supplied became known as Your Answer: [None Given] Correct Answer: supply-side economics. Feedback: supply-side economics. Question 9 Multiple Choice 0 of 5 point(s) Suppose that policymakers are considering placing a tax on either of two markets. In Market A, the tax will have a significant effect on the price consumers pay, but it will not affect equilibrium quantity very much. In Market B, the same tax will have only a small effect on the price consumers pay, but it will have a large effect on the equilibrium quantity. In which market will the tax have a larger deadweight loss? Your Answer: [None Given] Correct Answer: Market B Feedback: Market B Question 10 Multiple Choice 0 of 5 point(s) As the size of a tax increases the deadweight loss from the tax Your Answer: [None Given] Correct Answer: increases. Feedback:
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econ - problem set 4_ProblemSet - Question 1 Multiple...

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