Principles of Microeconomics (12th Edition)
12th Edition
ISBN: 9780134078816
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Question
Chapter 19, Problem 2.4P
(a)
To determine
Calculate the value of per-unit payroll tax.
(b)
To determine
Calculate the value of per unit price of labor faced by the firms after the imposition of tax.
(c)
To determine
Calculate the value of wage rate of workers after the imposition of tax.
(d)
To determine
Identify the labor demand and labor supply after the imposition of tax.
(e)
To determine
Identify the new equilibrium wage rate.
(f)
To determine
Calculate the values of total tax collection and excess burden on employers after the imposition of tax.
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Given the following information:
QD = 240 – 5P
QS = P
Where QD is the quantity demanded, Qs is the quantity supplied and P is the price
Calculate the consumer surplus before tax =
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How does a Tax on Production affect a negatively sloped Demand curve or the Supply Curve?
The supply curve shifts to the Left
The supply curve shifts to the Right
There is no shift, only movement along the Supply Curve
The demand curve shifts to the left
Which one is CORRECT about the effects of tax on welfare as compared to without tax?
A.
Consumer surplus will rise
B.
Producer surplus will rise
C.
Tax revenue will rise
D.
Total surplus will rise
E.
All of the above
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A.
demand is inelastic
B.
demand is elastic
C.
supply is inelastic
D.
supply is elastic
E.
A and C
F.
B and D
Which one is CORRECT about the marginal and average costs?
A.
Marginal cost crosses both average variable cost and average total cost at their minimum points.
B.
Average fixed cost increases continuously as the level of output increases.
C.
Whenever marginal cost is greater than average total cost, average total cost is rising.
D.
All of the above
Which of the following is an example of implicit costs?
A.
payments made by the firm to others
B.
opportunity cost of resources owned…
Chapter 19 Solutions
Principles of Microeconomics (12th Edition)
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