Bundle: Principles of Microeconomics, 7th + LMS Integrated Aplia, 1 term Printed Access Card
7th Edition
ISBN: 9781305242463
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 12, Problem 4CQQ
To determine
The application on which the policy of toll tax is based.
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6. All of the following are sources of inefficiency except:
a. public goods.
b. the invisible hand.
c. external costs.
d. price ceilings.
answer. (b. the invisible hand.)
9. Which of the following is the most correct statement about tax burdens?
a. A tax burden falls most heavily on the side of the market that is closer to unit elastic.
b. A tax burden falls most heavily on the side of the market that is elastic.
c. A tax burden is distributed independently of relative elasticities of supply and demand.
d. A tax burden falls most heavily on the market that is inelastic.
answer (c. A tax burden is distributed independently of relative elasticities of supply and demand.)
16. The Coase theorem suggests that:
a. the government should be actively involved in solving the problem of externalities.
b. private parties may be able to solve the problem of externalities on their own.
c. high transaction or bargaining costs are necessary in solving the problem of externalities.
d.…
The government raises revenue through taxation to pay for the services it provides.
a. True
b. False
A toll is a tax on citizens who use toll roads. Thispolicy can be viewed as an application ofa. the benefits principle.b. horizontal equity.c. vertical equity.d. tax progressivity
Chapter 12 Solutions
Bundle: Principles of Microeconomics, 7th + LMS Integrated Aplia, 1 term Printed Access Card
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- Q) If a tax is economical, Select one: a. its cost of collection is small relative to the revenue collected. b. it has an economic impact on households. c. it creates no economic distortions. d. its revenues are used to finance productive investments. Explain it Early and correctly. Not copy paste anything from Anywhere.arrow_forwardTax incidence usually falls A. only on producers. B. on both consumers and producers. C. only on consumers. D. on the government.arrow_forward95. Homeowners a. benefit from several loopholes. b. must pay tax on the “income” of living in a house. c. have no particular advantages in the tax system. d. are subject to double taxation.arrow_forward
- To 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_forwardAnalyze taxes on tobacco through the perspective of: a. a smoker b. a cigarette firmarrow_forwardWhat is free-riding? Is it positively related to tax revenue or other way if it is a problem for the government suggest remedies for it?arrow_forward
- If the production of computer chips yields greater technology spillovers than the production of potato chips, the government should Select one: a. discourage the production of computer chips with taxes. b. discourage the production of potato chips with taxes. c. encourage the production of potato chips with subsidies. d. encourage the production of computer Ichips with subsidies.arrow_forwardA pollution tax: A increases the price of the good taxed. B decreases the price of the good taxed. C increases the production of the good taxed. Dincreases the quantity ofthe taxed good demanded.arrow_forwardWhich of the following is not a canon of taxation? Pick a,b,c, or d a. Equity b. General Acceptability c. Convenience d. Certaintyarrow_forward
- Marked out of1.00 When the price elasticity of demand is high and the price elasticity of supply is low, the burden of a tax falls primarily or Select one. a. buyers of the product. b. both buyers and sellers of the product equally C. the tax payers. d. sellers of the product. CLEAR MY CHOICEarrow_forwardc. A progressive tax d. A regressive tax QUESTION 3 Corporate profits are a. taxed to pay for Medicare. b. exempt from taxes. c. included in payroll taxes. d. taxed twice, once as profit and once as dividends. QUESTION 4 A value-added tax or VAT is a tax on a. retail purchases only. b. pollution. c. all stages of production of a good. d. wholesale purchases only. QUESTION 5 Table 12-17 INCOME $50,000 100,000 200,000 AMOUNT OF TAX $12,500 (25%) $25,000 (25%) $50,000 (25%) TAX Aarrow_forward1. "Taxes are necessary evil". Based on what we discussed in class, discuss and argue why this is true. Then, describe in details how we can build an efficient taxation system?arrow_forward
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