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

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.

What is the marginal tax rate (rounded to the nearest tenth of a percentage point) for someone whose income increases from $80,000 to $100,000? Answer hora Income range Tax rate $15,000 and below 5% $15,001-$30,000 8% $30,001-$60,000 12% $60,001-$120,000 20% ← PREVIOUS

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

Consider an ad-valorem tax on a good X. The Demand for good X is constant elasticity with elasticity -2. The Supply for good Y is constant elasticity with elasticity 3. What is the incidence of the tax? Provide a fraction that shows the ratio of the tax burden that falls on the supply side relative to the demand side: 3/2 2/3 none of these (2+3)/2 (2+3)/3

I. Refer to the following Graphs a.) When a per unit tax is imposed on the consumer of the product, identify how the consumer and producer surplus changes, identify the deadweight loss and the amount of the total tax that will be received by the government. Price PTax B C PE F G E I P1 Dm1 H K DmTax QE QE2 Quantity Producer Surplus before tax = Consumer Surplus before tax = Producer Surplus after tax = %3D Consumer Surplus after tax = Deadweight Loss Total Tax

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

Question 44 Please refer to the description of a tax on a market, represented by the graphic .. The amount of deadweight loss as a result of the tax is represented by the area(s) Check all that apply. F C. E.

There are a variety of taxes that a person pays when buying an airline ticket. One tax is called the LUST fuel tax. LUST stands for leaking underground storage tank. The LUST tax is to establish a trust fund to provide money for oversight and corrective action against owners of leaking underground storage tanks and provides money for cleanup of LUST sites where the owner or operator is unknown. Is it efficient for customer’s of airlines to beforced to pay the tax?

7. Within the context of taxation policy, many economists have preferred the use of consumption tax to income tax. Explain.