Click Clickon onthe thebutton buttontotogo gototothe theQuestion problem © 2013 Pearson Taxes CLICKER QUESTIONS © 2013 Pearson Click Clickon onthe thebutton buttontotogo gototothe theQuestion problem Checkpoint 8.1 Checkpoint 8.2 Checkpoint 8.3 Question Question 11 Question Question 55 Question Question 88 Question Question 22 Question Question 66 Question Question 99 Question Question 33 Question Question 77 Question Question 44 © 2013 Pearson Question Question 10 10 CHECKPOINT 8.1 Question Suppose the demand for barley is perfectly elastic The supply of barley is neither perfectly elastic or perfectly inelastic If a tax is imposed on barley, _ A B C D E barley sellers pay the entire tax barley buyers pay the entire tax the government pays the entire tax the tax is split evenly between barley buyers and sellers who pays the tax depends on whether the government imposes the tax on barley sellers or on barley buyers © 2013 Pearson CHECKPOINT 8.1 Question If the government levies a tax on buyers of a good that has an elastic demand and an elastic supply, the price received by sellers _ and the price paid by buyers _ A B C D E rises; rises rises; falls falls; rises falls; falls does not change; rises © 2013 Pearson CHECKPOINT 8.1 Question The figure shows the market for delivered pizza Consumers pay of the tax on pizza and suppliers pay of the tax A $6: $0 B $3; $3 C $0; $6 D $4; $2 E $2; $4 © 2013 Pearson CHECKPOINT 8.1 Question When the government imposes a tax on the seller of a good that has a perfectly inelastic supply, _ A B C D E a deadweight loss arises the seller pays all of the tax the buyer pays all of the tax the government collects no tax revenue sellers reduce the amount that they offer for sale © 2013 Pearson CHECKPOINT 8.2 Question In the United States, the tax on labor income is A paid only by workers B paid only by employers C shared equally between workers and employers D shared between workers and employers with workers paying more than employers E shared between workers and employers with employers paying more than workers © 2013 Pearson CHECKPOINT 8.2 Question If the tax rate is constant as income increases, then the tax is A B C D E regressive if the average tax rate increases progressive if the average tax rate decreases proportional if everyone pays the same amount of tax regressive if the average tax rate decreases efficient if low-income people pays less tax than highincome people © 2013 Pearson CHECKPOINT 8.2 Question If the government raises the social security tax on workers but does not change the social security tax on employers, _ A B C D E the wage rate paid by employers will fall the demand for labor will increase employers will hire more workers the labor market will be more efficient workers will receive a lower wage rate © 2013 Pearson CHECKPOINT 8.3 Question The proposition that people should pay taxes according to how easily they can bear the burden is the principle A B C D E regressive tax benefits ability-to-pay fairness principle equality principle © 2013 Pearson CHECKPOINT 8.3 Question Joan’s income is $60,000 and she pays $6,000 in taxes Juan’s income is $40,000 and he pays $7,000 in taxes This situation violates A the benefits principle B the big tradeoff C vertical equity D horizontal equity E the fair-tax principle © 2013 Pearson CHECKPOINT 8.3 Question 10 Compared to taxes on labor income, taxes on capital income generate deadweight loss and are paid by people who generally have ability to pay A B C D E greater; greatest greater; least smaller; greatest smaller; least no; least © 2013 Pearson ... If the government levies a tax on buyers of a good that has an elastic demand and an elastic supply, the price received by sellers _ and the price paid by buyers _ A B C D E rises; rises rises;... of the tax on pizza and suppliers pay of the tax A $6: $0 B $3; $3 C $0; $6 D $4; $2 E $2; $4 © 2013 Pearson CHECKPOINT 8.1 Question When the government imposes a tax on the seller of a... deadweight loss arises the seller pays all of the tax the buyer pays all of the tax the government collects no tax revenue sellers reduce the amount that they offer for sale © 2013 Pearson CHECKPOINT