Question 13Excise taxes are popular sources of revenue for governments becauseO they require very little paperwork.consumers are rarely aware that they are paying them.O they are easy to understand.O they have very high levels of deadweight loss.they are very stable sources of revenue.

Excise tax is the tax levied on the production of a good. The burden of excise tax falls on both…

Answered: Excise taxes are popular sources of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

In Malaysia, the government body entrusted to govern various forms of indirect taxation is the Royal Malaysian Customs Department. Describe the various types of taxes that the body is entrusted to collect. Please give explanation in details with example
Solve it correctly please. I will rate accordingly
Imagine there is a tax on cigarettes and that consumers and producers each bear some portion of the tax. Assume that when vape pens were introduced, they were not taxed. How would you expect that introduction of vape pens to affect the distribution of the tax burden associated with the cigarette tax? O It will decrease the consumer tax burden because demand for cigarettes will become more elastic. O It will increase the consumer tax burden because demand for cigarettes will become more elastic. O It will decrease the consumer tax burden because demand for cigarettes will become more inelastic. O It will increase the consumer tax burden because demand for cigarettes will become more inelastic.
Suppose that the demand for CDs is very price elastic and the supply is very price inelastic. A per unit tax imposed on CDs would be borne a. equally by buyers and sellers. b. more heavily by buyers. c. more heavily by sellers. d. by neither buyers or sellers.
Suppose that after an excise tax was imposed on sofas, the price buyers paid for sofas increased by $5. Suppose further that the price elasticity of demand for sofas is 1.8 and the price elasticity of supply for them is 1.6. It can be concluded with certainty that the amount of the excise tax was Select one: OA less than $5. B. $5. OC. greater than $5 but less than $10. OD. $10. OE. greater than $10.
With respect to the sources of state tax revenue, the corporate income tax generates approximately twice the revenue as state sales and use taxes. O True O False
In which S is the before-tax supply curve and St is the supply curve after the imposition of an excise tax. The burden of this tax is borne: P St B A 0 C E G only by consumers. F most heavily by consumers. D S most heavily by producers. equally by consumers and producers. Q
4. Consider market for medicine and luxury cars. Assume government decides to impose a tax on buyers of both goods. Using supply, demand and elasticity concepts, explain in which case deadweight loss of taxation will be larger?
Taxes and Subsidies: End of Chapter Problem Let's see if we can formulate any real laws about the economics of taxation. Which of the following must be true? More than one may be true. If there is a tax: Must occur a. The equilibrium quantity must fall, and the price that buyers pay must rise. b. The equilibrium quantity must rise, and the price that sellers pay must rise. Will not occur c. The equilibrium quantity must fall, and the price that sellers receive must fall. Answer Bank d. The equilibrium quantity must rise, and the price that buyers receive must fall.
Which of the following statement is true about tax? A. The burden shared by consumers and producers doesn’t change regardless of which party the tax is imposed onB. Market functions less efficiently, while not all suffer from a lossC. Both supply and demand curve have something to do with tax incidenceD. all of the above
Given the demand and supply equations below, show the burden of a 50% tax on the producers. What is the (a) burden, tax revenue? Then replace the % tax with $40 per unit tax. What is the tax burden and tax revenue? 200 I0 120 00 PO GO 20 Qtr 140 IGO I O % tax: burden on consumer burden on producer tax revenue Unit tax: burden on con burden on producer sumer tax revenue Which tax as a consumer do you prefer?
Government levied a tax on good A. The less elastic the demand is, the greater or the smaller the tax burden consumers bear? Also, is the after-tax equilibrium quantity the greater or smaller? Consumers’ tax burden: After-tax equilibrium quantity:

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Excise taxes are popular sources of revenue for governments because O they require very little paperwork. consumers are rarely aware that they are paying them. they are easy to understand. O they have very high levels of deadweight loss. O they are very stable sources of revenue.