Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971493
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 10, Problem 4CQQ
To determine
Deadweight loss and corrective tax.
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Which of the following statements about corrective taxes is generally NOT true?
a. They raise government revenue.
b. They reduce the quantity sold in a market.
c. They increase what consumers pay for the good.
d. They cause deadweight losses.
Which of the following statements about corrective taxes is generally not true?
a) Economists prefer them to command-and-control regulation.
b) They raise government revenue.
c) They cause deadweight losses.
d) They reduce the quantity sold in a market.
Which of the following statements about correctivetaxes is generally NOT true?a. They increase what consumers pay for the good.b. They raise government revenue.c. They reduce the quantity sold in a market.d. They cause deadweight losses.
Chapter 10 Solutions
Principles of Microeconomics (MindTap Course List)
Ch. 10.1 - Prob. 1QQCh. 10.2 - Prob. 2QQCh. 10.3 - Prob. 3QQCh. 10 - Prob. 1CQQCh. 10 - Prob. 2CQQCh. 10 - Prob. 3CQQCh. 10 - Prob. 4CQQCh. 10 - Prob. 5CQQCh. 10 - Prob. 6CQQCh. 10 - Prob. 1QR
Ch. 10 - Prob. 2QRCh. 10 - Prob. 3QRCh. 10 - Prob. 4QRCh. 10 - Prob. 5QRCh. 10 - Prob. 6QRCh. 10 - Prob. 1PACh. 10 - Prob. 2PACh. 10 - Greater consumption of alcohol leads to more motor...Ch. 10 - Prob. 4PACh. 10 - The many identical residents of Whoville love...Ch. 10 - Prob. 6PACh. 10 - Prob. 7PACh. 10 - Prob. 8PACh. 10 - Prob. 9PA
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- Which of the following best describes why the government is not able to decide whether it will be consumers or producers will pay a tax. a. The tax changes the equilibrium price, so that producers and consumers share the burden of the tax. b. The tax corrects an externality. c. Producers will always pass the entire tax onto consumers d. A tax on consumers will result in an increase in supplyarrow_forwardWhich of the markets is the best market to tax? P P a. C. D S P Q S D Q P b. S d. D D Q S Qarrow_forwardWhy do producers have more interest in government regulations than consumers do?arrow_forward
- To minimize deadweight loss associated with taxation, policy makers should A.impose flat tax rates instead of progressive tax rates. B.impose taxes in markets with positive externalities. C.all of these D.impose taxes in markets with imperfect competition.arrow_forwarde. What happens when government imposes a tax of 60 cents per gallon on buyers?arrow_forward1. The equilibrium price of juice was initially $1.80 per bottle, and the equilibrium quantity was 8,000 bottles per day. When the government imposed a tax of $0.50 per bottle, the price went up to $2.18 per bottle, and quantity fell by 12%. A) How much of the tax (in $/bottle) are the buyers paying? B) How much of the tax (in $/bottle) is shouldered by the sellers? C) After the tax is imposed, how many bottles will be consumed?arrow_forward
- To determine the optimal amount of a public good to supply, the government must know Question 9Answer a. the price elasticity of demand of each buyer. b. the supply curve of the government. c. everyone's valuation for the public good. d. the revenue of selling the good.arrow_forward$15 $12 $8 28 Select one: a. $7 b. $3 500 700 C. $4 d. $15 Supply Social value Demand The figure above shows a market for Softella medicated tissues. Assume the only use for the tissues is to wipe and clean your hands, which prevents the spread of germs to others. If the government were to subsidize the users of the tissues, what would be the dollar amount of the subsidy? Quantity of boxes of so ftella medicated tissuesarrow_forwardIs it in the public interest to tax cigarettes? Explain your position using some of the economic concepts or graphs.arrow_forward
- Choose one of the following examples and explain whether you think that the government should ban the product. Cigarettes. Beer, wine, or liquor. Fast food.arrow_forwardQd = 1,600 - 125P Qs = 440 + 165P Quantities are measured in millions of bushels; prices are measured in dollars per bushel. a. Calculate the equilibrium price and quantity that will prevail under a completely free market. b. Calculate the price elasticities of supply and demand at the equilibrium values. c. The government currently has a $4.50 bushel support price in place. What impact will this support price have on the market? Will the government be forced to purchase corn under a program that requires them to buy up any surpluses? If so, how much? 1四 "cause" causesarrow_forwardQ2' Refer to the figure above. In order to raise revenue, the government imposes a $2 per gallon tax on suppliers. As a result, suppliers bear what percent of the tax? 100 percent of the tax 25 percent of the tax 50 percent of the tax The tax is paid completely by consumersarrow_forward
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