Lecture+16+quiz

Lecture+16+quiz - B It depends on the elasticity of demand...

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Question 1: When the government puts a tax on a good, what is the name for how the burden of the tax is shared between producers and consumers? A. Tax-share ratio of the tax. B. Tax-burden ratio of the tax. C. Burden-share ratio of the tax. D. Economic incidence of the tax. E. Revenue incidence of the tax. Quiz Question 2: When the government puts a tax on a good, what determines how much of the economic incidence of the tax falls on consumers? A. It depends on whether the tax law requires consumers to pay the tax.
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Unformatted text preview: B. It depends on the elasticity of demand. C. It depends on the elasticity of supply. D. It depends on both the elasticity of demand and the elasticity of supply. E. None of the above. Quiz Question 3: When the government sets a price floor, in the absence of any non-price rationing mechanism, what is the effect in the market? A. A price floor causes a shortage. B. A price floor causes a surplus. C. It depends upon the size of the deadweight loss. Quiz...
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Lecture+16+quiz - B It depends on the elasticity of demand...

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