Chapter 8
Application: The Costs of Taxation
Test A
. A tax levied on the buyers of a product shifts the
a. demand curve upward or to the right.
b. demand curve downward or to the left.
c. supply curve upward or to the left.
d. supply curve downward or to the right.
ANSWER: b. demand curve downward or to the left.
TYPE: M KEY1: D SECTION: 1 OBJECTIVE: 1 RANDOM: Y
. When a tax is levied on a good
a. buyers are wor off but llers are not.
b. llers are wor off but buyers are not.
c. neither buyers nor llers are wor off.
d. both buyers and llers are wor off.
ANSWER: d. both buyers and llers are wor off.
TYPE: M KEY1: D SECTION: 1 OBJECTIVE: 1 RANDOM: Y
. When a tax on a good is enacted,
a. llers always bear the full burden of the tax.
b. buyers always bear the full burden of the tax.
c. buyers and llers share the burden of the tax regardless of which party it is levied on.
d. llers bear the full burden if the tax is levied on them, but buyers bear the full burden if the tax is levied on them.
ANSWER: c. buyers and llers share the burden of the tax regardless of which party it is levied on.
TYPE: M KEY1: C SECTION: 1 OBJECTIVE: 1 RANDOM: Y
. A tax placed on a good
a. caus the price of the good to fall.
b. caus the size of the market for the good to shrink.
c. affects buyers of the good, but not llers.
d. is usually borne entirely by the ller of the good.
ANSWER: b. caus the size of the market for the good to shrink.
TYPE: M KEY1: C SECTION: 1 OBJECTIVE: 1 RANDOM: Y
. When a tax is levied on a good
a. the market price falls becau demand declines.
b. the market price falls becau supply falls.
c. the market price ris becau demand falls.
d. a wedge is placed between the price buyers pay and the price llers receive.
ANSWER: d. a wedge is placed between the price buyers pay and the price llers receive.
TYPE: M KEY1: C SECTION: 1 OBJECTIVE: 1 RANDOM: Y
. The benefit received by the llers of a good in a market is measured by
a. producer surplus.
b. consumer surplus.
c. the amount it costs producers to produce the good.
d. the amount buyers pay for the good in excess of the amount the good is actually worth.
ANSWER: a. producer surplus.
TYPE: M KEY1: D SECTION: 1 OBJECTIVE: 1 RANDOM: Y
. According to the graph, the equilibrium market price before the tax is impod is
a. P3.
b. P2.
c. P1.什么天立地
d. impossible to determine.
ANSWER: c. P1.
TYPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: Y
. According to the graph, the price buyers pay after the tax is
a. P3秦时明月汉时关全诗.
b. P2.
c. P1.
d. impossible to determine.
ANSWER: a. P3.
TYPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: Y
. According to the graph, the price llers receive after the tax is
a. P中国封建社会3.
b. P2.
c. P1.
d. impossible to determine.
ANSWER: b. P2.
TYPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: Y
. According to the graph, consumer surplus before the tax was levied is reprented by area
a. A.
b. F.
c. A + B + C.
d. D + E + F.
ANSWER: c. A + B + C.
阿胶糕的正确吃法TYPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: Y
. According to the graph, before the tax the producer surplus is reprented by area
a. A.沧海桑田
b. F.
c. A + B + C.
d. D + E + F.奋斗的文章
ANSWER: d. D + E + F.
TYPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: Y
. According to the graph, the tax caud a reduction in consumer surplus reprented by area
a. A.
b. F.
c. B + C.
d. D + E.
ANSWER: c. B + C.
TYPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: Y
. According to the graph, the tax caud a reduction in producer surplus reprented by area
a. A.
b. F.
c. B + C.
d. D + E.
ANSWER: d. D + E.
TYPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: Y
. According to the graph, the benefits to the government (total tax revenue) are reprented by area
a. A + B.
b. C + E.
c. B + D.
d. D + F.
ANSWER: c. B + D.
选调
TYPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: Y
. According to the graph, the total surplus (consumer, producer, and government) with the tax is reprented by area
a. C + E.
b. A + B + C.
c. D + E + F.
广播体操放飞理想 d. A + B + D + F.
ANSWER: d. A + B + D + F.
TYPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: Y
. According to the graph, the loss in total welfare resulting from the levying of the tax is reprented by area
a. C + E.
b. A + B + C.
c. D + E + F.
d. A + B + D + F.
ANSWER: a. C + E.
TYPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: Y
