The burden of a tax falls more heavily on the buyers in a market when ?

Related Mcqs:

1. The burden of a tax falls more heavily on the sellers in a market when ?

   A. both supply and demand are elastic
   B. both supply and demand are inelastic
   C. demand is inelastic and supply in elastic
   D. demand is elastic, and supply is inelastic

2. For which of the following products would the burden of a tax likely fall more heavily on the sellers ?

   A. Clothing
   B. food
   C. housing
   D. entertainment

3. A tax whose burden expressed as a percentage of income, falls as income increases is a ?

   A. benefits received tax
   B. progressive tax
   C. regressive tax
   D. proportional tax

4. A tax placed on a good that is a necessity for consumers will likely generate a tax burden that ?

   A. falls more heavily on sellers
   B. falls entirely on sellers
   C. falls more heavily on buyers.
   D. is evenly distributed between buyers and sellers.

5. Refer to Exhibit 4. If a tax is placed on the product in this market tax revenue paid by the buyers is the area ?

   A. B + C + E + F
   B. B
   C. B + C
   D. A

6. When a tax distorts incentives to buyers and sellers so that fewer goods are produced and sold than otherwise the tax has ?

   A. caused a deadweight loss
   B. decreased equity
   C. generated no tax revenue
   D. increased efficiency

7. The property tax wealth tax inheritance tax and income taxes such as persona and corporate taxes are ?

   A. indirect taxes
   B. direct taxes
   C. inelastic
   D. value-added tax

8. Imagine there is no tax on income up to Rs 1000 after that there is a tax of 505 what is the average tax rate on an income of Rs 20,000 ?

   A. Rs 50000
   B. 20%
   C. 25%
   D. Rs 10000

9. When a tax is collected from the buyers in a market, ?

   A. the tax burden falls most heavily on the buyers.
   B. the buyers bear the burden of the tax
   C. the sellers bear the burden of the tax
   D. the tax burden on the buyers and sellers in the same as an equivalent tax collected from the sellers

10. Which of the following statements about the burden of a tax is correct ?

    A. The tax burden generated from a tax placed on a good consumer perceive to be a necessity will fall most heavily on the sellers of the good
    B. The burden of a tax falls on the side of the market (buyers or sellers) from which it is collected
    C. The distribution of the burden of a tax is determined by the relative elasticities of determined by legislation.
    D. The tax burden falls most heavily on the side of the market (buyers and sellers) that is most willing to leave the market when price movements are unfavorable to them.