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

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

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

3. 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.

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

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

5. 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

6. Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?

   XA. wages and rents should fall in Country A
   B. wages and rents should rise in Country A
   C. wages should rise and rents should fall in Country A
   D. wages should fall and rents should raise in Country A

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. 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.

10. Refer to Exhibit 4. Which of the following is true with regard to the burden of the tax in Exhibit 4 ?

    A. The buyers pay a larger portion of the tax because demand is more inelastic than supply
    B. The sellers pay a larger portion of the tax because supply is more elastic than demand
    C. The buyers pay a larger portion of the tax because demand is more elastic then supply
    D. The sellers pay a larger portion of the tax because supply is more inelastic than demand