MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Chapter 3.A, Problem 11SQ
To determine
The different causes of the
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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.
In the market for domestic workers, the wage rate is currently causing a deadweight loss. Thegovernment decides to become more efficient. Which of the following should they do, ceteris paribus?a) Lower the wage rate until the deadweight loss is eliminated.b) Increase the wage rate until the deadweight loss is eliminated.c) They should not change the minimum wage and leave it as is (laissez-faire).d) Decrease government spending until the deadweight loss is eliminated.
Suppose now that the government imposes a price support of 5 dollars. Find the dead-
weight loss, i.e., DWL**.
Chapter 3 Solutions
MACROECONOMICS FOR TODAY
Ch. 3.7 - Prob. 1YTECh. 3.7 - Prob. 1GECh. 3.7 - Prob. 2GECh. 3.7 - Prob. 3GECh. 3.A - Prob. 1SQPCh. 3.A - Prob. 2SQPCh. 3.A - Prob. 3SQPCh. 3.A - Prob. 4SQPCh. 3.A - Prob. 1SQCh. 3.A - Prob. 2SQ
Ch. 3.A - Prob. 3SQCh. 3.A - Prob. 4SQCh. 3.A - Prob. 5SQCh. 3.A - Prob. 6SQCh. 3.A - Prob. 7SQCh. 3.A - Prob. 8SQCh. 3.A - Prob. 9SQCh. 3.A - Prob. 10SQCh. 3.A - Prob. 11SQCh. 3.A - Prob. 12SQCh. 3.A - Prob. 13SQCh. 3.A - Prob. 14SQCh. 3.A - Prob. 15SQCh. 3.A - Prob. 16SQCh. 3.A - Prob. 17SQCh. 3.A - Prob. 18SQCh. 3.A - Prob. 19SQCh. 3.A - Prob. 20SQCh. 3 - Prob. 1SQPCh. 3 - Prob. 2SQPCh. 3 - Prob. 3SQPCh. 3 - Prob. 4SQPCh. 3 - Prob. 5SQPCh. 3 - Prob. 6SQPCh. 3 - Prob. 7SQPCh. 3 - Prob. 8SQPCh. 3 - Prob. 9SQPCh. 3 - Prob. 10SQPCh. 3 - Prob. 11SQPCh. 3 - Prob. 12SQPCh. 3 - Prob. 1SQCh. 3 - Which of the following would not cause market...Ch. 3 - Prob. 3SQCh. 3 - Prob. 4SQCh. 3 - Prob. 5SQCh. 3 - Prob. 6SQCh. 3 - Prob. 7SQCh. 3 - Prob. 8SQCh. 3 - Prob. 9SQCh. 3 - Prob. 10SQCh. 3 - Prob. 11SQCh. 3 - Prob. 12SQCh. 3 - Prob. 13SQCh. 3 - Prob. 14SQCh. 3 - Prob. 15SQCh. 3 - Prob. 16SQCh. 3 - Prob. 17SQCh. 3 - Prob. 18SQCh. 3 - Prob. 19SQCh. 3 - Prob. 20SQCh. 3 - Prob. 21SQCh. 3 - Prob. 22SQCh. 3 - Prob. 23SQCh. 3 - Prob. 24SQCh. 3 - Prob. 25SQ
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- The demand for tomatoes is Q = 40-4P and the supply of tomatoes is Q = P +10. Answer the following questions. (a) Suppose that $1 per unit tax is levied on the consumers. Who bears the economic incidence of this tax? (b) Calculate the deadweight loss (c) Suppose that stores will pay $1 per unit tax directly. What will happen to the "sticker price" on tomatoes? How will the size of the consumer tax burden change? (d) Suppose that tax is increased to $2 per unit on the consumers. Calculate the deadweight loss. Compare the size of the deadweight loss with (b).arrow_forwardThe government in your country is considering three programs that affect the market of cigarettes. Program 1: media campaigns and labeling requirements aimed at making the public aware 0f the dangers of cigarette smoking. program 2: A price-support program for tobacco farmers. Program 3: A cap on the number of cases of cigarettes sold per quarter at 20,000 cases. The aim of the government is to support farmers while reducing the consumption of cigarettes. What program or combination of programs should be implemented? Choose 1 Program 3 Program 1 Program 1 and 3 Program 2 Reduce quantity of cigarettes consumed and reduce price of tobacco All three programs Reduce quantity of cigarettes consumed and reduce price of cigarettes Reduce quantity of cigarettes consumed and increase price for tobacco Program 1 and Program 2 Reduce quantity of cigarettes consumed and increase price for cigarettesarrow_forwardIf a municipality sets a price ceiling below equilibrium for apartments in New York City, Select one: a. the price ceiling will create a surplus of apartments b. the price ceiling will create a shortage of apartments c. the price ceiling will not affect the market for apartments d. the market for more broadway plays will increase Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forward
- Alex and Mari started Doobie's, an organic, fresh fruit truck. Because of the pandemic, the demand for Doobie's products fell tremendously. This means Alex's and Mari's __________. Select one: a. equilibrium quantity fell when supply shifted to the left. b. supply decreased. c. equilibrium quantity increased when demand shifted to the left. d. demand for workers decreased.arrow_forward63. One form of allocating price is rationing. Rationing that is controlled by the government is always fair, and everyone gets their fairs share. True or False 64. A market failure on the demand side is harder to correct than failures on the supply side. True or Falsearrow_forwardQUESTION 8 The demand for cigarettes has seen some decrease ever since vaping was introduced as a less harmful alternative to smoking cigarettes. Select the item from the list provided to make the following statements true. ✓ The main factor detailed in the scenario causing the decrease in demand for cigarettes is a/an - 1. upward movement along the demand curve change in price of a complement good increase in population 4. downward movement along the demand curve 2. Suppose the Australian government taxes the production of 3. cigarettes which led to an increase in prices of cigarettes and a decrease in quantity demanded for cigarettes in the market. Graphically this can be depicted as a/an of cigarettes. ✓ Now assume that prices of e-cigarettes (vape) decreased, and cigarette smokers switched to the cheaper e-cigarettes. This can best be explained by a 5. change in income of consumer 6. change in price of a substitute 7. change in expectation of future price 8. decrease in population…arrow_forward
- what would happen in the market for lobster of the government reduces the income tax and lobsters are a normal goodarrow_forwardWhich of the following creates a deadweight loss in competitive markets? (a) Taxes (b) Import quotas (c) Tariffs (d) All of the above.arrow_forwardc. Place the shape on the graph to label the deadweight loss that occurs in the market at 4 million hours. d. At 4 million hours, the marginal benefit to households is e. The efficient quantity of hours in this market is million hours. the marginal cost to child care providers.arrow_forward
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