The government raises revenue through taxation to pay for the services it provides. a. True b. False

The figure below shows that the imposition of an indirect tax shifts the supply curve to the left. What is the total tax revenue received by the government? Pick a,b,c, or d a. $300 b. $500 c. $650 d. $200 

If a tax system is well designed: Select one: a. then efficiency can be improved only by making the system less fair. b. it maximizes fairness. c. it maximizes efficiency. d. it maximizes efficiency and equity.   I think its d

When a good is taxed: a. both buyers and sellers of the good are made worse off. b. only buyers are made worse off, because they ultimately bear the burden of the tax. c. only sellers are made worse off, because they ultimately bear the burden of the tax. d. neither buyers nor sellers are made worse off, since tax revenue is used to provide goods and services that would otherwise not be provided in a market economy.

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If the state government would like to increase tax revenue, please give three examples of products/commodities that the government should impose tax on so that they can collect the highest amount of tax revenue. Please explain your reasons clearly.

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

A new elected government want to reform its tax system. As an economist you are hired to advise the government how to design a better tax system. Give your recommendation on factors that government need to consider if they want to implement the better tax system. Add specific example or case for each factor you recommend to government

Price a. A. b. B. c. B+C+E + F. d. B + C. e. C. PB Po Ps L AIBI А C 15 Size of tax per unit W Qo Supply Demand Quantity If a tax is placed on the product in this market, tax revenue paid by the buyers is the are

Suppose the market for cigarette is competitive. An economist estimates the price elasticity of demand and supply for cigarette are -0.6 and 0.8 respectively. a. Suppose the government imposes a per-unit tax on the cigarette sellers. Who, buyers or sellers, would share a heavier tax burden? Explain your answers without calculation.  b. Suppose the government imposes a per-unit tax of $40 on the cigarette sellers. By how much would buyers and sellers of cigarettes share the tax burden respectively? Show your calculation.  c. Suppose many small sellers, such as newsstands, complain the heavy tax burden borne by them. Would it be better to these small sellers if the government decides to impose a $20 per-unit tax on both the buyers and the sellers of cigarette? Explain.