3. Problems and Applications Q3Some states exclude necessities, such as food and clothing, from their sales tax. Other states do not.Excluding food and clothing from sales tax isother items.because italter the incentives to purchase food and clothing versusTrue or False: Excluding food and clothing from sales tax is less equitable because it benefits the rich more than the poor.TrueFalse

1. Excluding food and clothing from sales tax is progressive / beneficial because it helps alter the…

Answered: 3. Problems and Applications Q3 Some…

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter16: Government Spends, Collects, And Owes

Section16.4: Taxation

Problem 5R

See similar textbooks

Similar questions

1. consider public policy aimed at smoking a. studies indicate that the price elasticity of the demandmfor cigarettes is about 0.4. If a packet of cigarette is currently priced at $6 and goverment wants to reduce smoking by 20percent, by how miuch should it increase through levying a tax b. if the government permanently increase the price of cigarette will the policy have a larger effect on smoking one year from now or five years from now. explain c. studies also show that teenagers have a higher price elasticity of demand for cigarette than adults do. why might this be true
3 3 points The figure below shows the market for snowboards in the state of Colorado. The Colorado state legislature has imposed a sales of tax on each snowboard sold. Assume that the pre-tax price of a snowboard was $50. After the tax, consumers are paying $55 per snowboard while firms are receiving $40 per snowboard. DI Arse 1 The tax burden on households is $30 0000 O $5 $10 $15 $20 Sept O100
The graph shows the market for backpacks. Price (dollars per backpack) 22- 20+ 18- 16- 14- 12+ 10- 8- မှာ 0 100 S D 200 300 400 500 600 700 800 Quantity (backpacks per day) If a sales tax of $4 a backpack is imposed, calculate the tax burden. The tax burden is $ Type a day.
Price NA GOREN $20 18 16 14 10 D DAfter Tax 0 10 20 30 40 50 60 70 80 90 Quantity According to the graph, the price sellers will receive after the tax is imposed is $18.00. $14.00. $12.00. $8.00.
2. Suppose the price.elasticity of demand for commödity M is less than one. When a tax is imposed on commodity Mproduetion, it changes the price, quantity, and consumer speņding in which of the following ways? - Price Quantity Spending Irierease Decrease Decreàse. Therease Ancrease a. Increase- b. -Deerease Decrease Decrease Decrease - Decrease Iacrease
Question Arrange the following revenues in the federal government, from greatest to least. (1 being the greatest, 6 being the least.) Column A 1. 2. 3. 4. 5. 6. Individual Income Taxes Social Security and Medicare Taxes Corporate Income Taxes Excise Taxes Miscellaneous Revenue Customs Duties Column B a. 4 Select the three correct answers. O a Medicare and Medicaid Ob military and defense Uc state and local governments. Ud Federal Bureau of Investigation De education and transportation A f Social Security b. 2 c. 5 d. 1 e. 6 f. 3 Questio Which items are part of mandatory spending in the federal government?
5) The following graph shows the effect of a per-ticket tax on plane tickets from Boston to Tampa. Use the graph to answer questions 5 to 10. Price (P) of airline tickets (in dollars per ticket) OO 230 200 190 2850 3000 Based on the graph, which of the following statements is true? Swith tax D Sno no tax Figure 14 Image author created Quantity (Q) of airline tickets (thousands per day) The tax is imposed on passengers (i.e., the demand side of the market for plane tickets). Based on the graph, we cannot determine whether the tax is imposed on the airlines or on passengers. The tax is imposed on airlines (i.e., the supply side of the market for plane tickets). The tax is imposed on both sides of the market for plane tickets.
The graph shows the market for backpacks. Price (dollars per backpack) 22- 20- 18- 16- 14- 12- 10- 8 6- D 100 200 300 400 500 600 700 800 Quantity (backpacks per day) If a sales tax of $4 a backpack is imposed, calculate the tax burden. The tax burden is $ Type a day. That's incorrect. With a $4 tax on backpacks, the price paid by the buyer is $4 more than the price received by the seller. What is the quantity of backpacks bought and sold? What is the tax revenue? What is the excess burden? What is the tax burden?
QUESTION 10 Refer to the figure below: Tprice 10 6. 6. 4. D ater tade 10 20 30 40 50 60 70 80 quantity From the figure above, calculate the following: 1. The new price that the buyers will pay after the taxes. 2. The new price that the sellers will receive after the taxes 3. The tax burden on the buyers. 4. The tax burden on the sellers. 5. Tax size per unit. Note: Make sure to show details wherever necessary and possible. T T TT Paragraph 3 (12pt) E T - Arial T T HTML CSS O f Mashups 囲国旺 , 田! II
5. Calculating tax incidence Suppose that the US. government decides to charge beer consumers a tax. Before the tax, 10,000 cases of beer were sold every week at a price of $4 per case. After the tax, 3,000 cases of beer are sold every week; consumers pay $5 per case (including the tax), and producers recelve $2 per Case The amount of the tax on a case of beer is s per case. of this amount, the burden that falls on consumers is s per case, and the burden that falls on producers is per case. True or False: The effect of the tax on the quantity sold would have been larger if the tax had been levied on producers les or O True O False
The graph shows befire-tax, where the equilibrium is at 25. When the government levies the tax of 30 on X, price consumer have to pay changes to 35, and prince sellers recieve changes to 5. And at Ps:5, quantity is at 10. What is the consumers’ tax incidence and sellers’ tax incidence, when comaparing the chnage in the prices from before-tax equilibrium price 25??
OF Duppose a tax of $4 imposed. on a tee' equilibrium quont decreosefrom 2006 units to the unit is pou good, and thhe tax ity % the goed to a causes 1808 unts $5000 ond $3400. tax decreoses consemer surples by decruoses paucer, urpeus by the duod weipent loo 0os of tee tax is. a) $50 800 1200 2) $1600 5. e$2200 お 3000

Recommended textbooks for you

Economics Today and Tomorrow, Student Edition

Economics

ISBN:

9780078747663

Author:

McGraw-Hill

Publisher:

Glencoe/McGraw-Hill School Pub Co

ECON MACRO

Economics

ISBN:

9781337000529

Author:

William A. McEachern

Publisher:

Cengage Learning

Essentials of Economics (MindTap Course List)

Economics

ISBN:

9781337091992

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Economics Today and Tomorrow, Student Edition

Economics

ISBN:

9780078747663

Author:

McGraw-Hill

Publisher:

Glencoe/McGraw-Hill School Pub Co

ECON MACRO

Economics

ISBN:

9781337000529

Author:

William A. McEachern

Publisher:

Cengage Learning

Essentials of Economics (MindTap Course List)

Economics

ISBN:

9781337091992

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Microeconomics: Principles & Policy

Economics

ISBN:

9781337794992

Author:

William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS