ECNS 201 PRINTOUT
8th Edition
ISBN: 9781337096553
Author: Mankiw
Publisher: CENGAGE L
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Question
Chapter 10, Problem 4CQQ
To determine
Deadweight loss and corrective tax.
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Students have asked these similar questions
Which of the following statements about corrective taxes is generally NOT true?
a. They raise government revenue.
b. They reduce the quantity sold in a market.
c. They increase what consumers pay for the good.
d. They cause deadweight losses.
Which of the following statements about correctivetaxes is generally NOT true?a. They increase what consumers pay for the good.b. They raise government revenue.c. They reduce the quantity sold in a market.d. They cause deadweight losses.
Which of the following best describes why the government is not able to decide whether it will be consumers or producers will pay a tax.
a.
The tax changes the equilibrium price, so that producers and consumers share the burden of the tax.
b.
The tax corrects an externality.
c.
Producers will always pass the entire tax onto consumers
d.
A tax on consumers will result in an increase in supply
Chapter 10 Solutions
ECNS 201 PRINTOUT
Ch. 10.1 - Prob. 1QQCh. 10.2 - Prob. 2QQCh. 10.3 - Prob. 3QQCh. 10 - Prob. 1CQQCh. 10 - Prob. 2CQQCh. 10 - Prob. 3CQQCh. 10 - Prob. 4CQQCh. 10 - Prob. 5CQQCh. 10 - Prob. 6CQQCh. 10 - Prob. 1QR
Ch. 10 - Prob. 2QRCh. 10 - Prob. 3QRCh. 10 - Prob. 4QRCh. 10 - Prob. 5QRCh. 10 - Prob. 6QRCh. 10 - Prob. 1PACh. 10 - Prob. 2PACh. 10 - Greater consumption of alcohol leads to more motor...Ch. 10 - Prob. 4PACh. 10 - The many identical residents of Whoville love...Ch. 10 - Prob. 6PACh. 10 - Prob. 7PACh. 10 - Prob. 8PACh. 10 - Prob. 9PA
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Similar questions
- What are pros and cons to increasing the gasoline tax?arrow_forwardTo minimize deadweight loss associated with taxation, policy makers should A.impose flat tax rates instead of progressive tax rates. B.impose taxes in markets with positive externalities. C.all of these D.impose taxes in markets with imperfect competition.arrow_forwarde. What happens when government imposes a tax of 60 cents per gallon on buyers?arrow_forward
- Analyze taxes on tobacco through the perspective of: a. a smoker b. a cigarette firmarrow_forwardIf the government wants to raise tax revenue, which of the following items are good candidates for an excise tax? Choose one or more: A. toilet paper B. automobile tires C. cigarettes D. sweet potatoesarrow_forwardWhich of the following is an example of an exemption? A. people paying less on their taxes because they take care of childrenB. profits earned after costs are subtracted from total earningsC. amount of money used to pay for maintaining national parksD. money paid by corporationsarrow_forward
- 1. The equilibrium price of juice was initially $1.80 per bottle, and the equilibrium quantity was 8,000 bottles per day. When the government imposed a tax of $0.50 per bottle, the price went up to $2.18 per bottle, and quantity fell by 12%. A) How much of the tax (in $/bottle) are the buyers paying? B) How much of the tax (in $/bottle) is shouldered by the sellers? C) After the tax is imposed, how many bottles will be consumed?arrow_forwardHow does a tax on a good affect the price paid by buyers, price receive by sellers, and the quantity sold?arrow_forwardSuppose that before tax was imposed 400 million gallons of gasoline was supplied at $3.00 per gallon.a. What happens when government imposes a tax of 60 cents per gallon on sellers? b. How would such a tax affect the market for gasoline i.e. what is the new equilibrium? c. On whom does the incidence of the tax fall more heavily? d. How much government revenue will be generated by the excise tax? e. What happens when government imposes a tax of 60 cents per gallon on buyers? f. How would such a tax affect the market for gasoline i.e. what is the new equilibrium?arrow_forward
- How much deadweight loss a tax causes depends on: A. how responsive buyers and sellers are to a price change. B. None of the answers are correct. C. whether the tax is imposed on the buyer or seller. D. how much tax revenue the government generates. E. It can depend on all of these.arrow_forwardTax incidence usually falls A. only on producers. B. on both consumers and producers. C. only on consumers. D. on the government.arrow_forwardQd = 1,600 - 125P Qs = 440 + 165P Quantities are measured in millions of bushels; prices are measured in dollars per bushel. a. Calculate the equilibrium price and quantity that will prevail under a completely free market. b. Calculate the price elasticities of supply and demand at the equilibrium values. c. The government currently has a $4.50 bushel support price in place. What impact will this support price have on the market? Will the government be forced to purchase corn under a program that requires them to buy up any surpluses? If so, how much? 1四 "cause" causesarrow_forward
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