A. generate a deadweight loss that is unaffected by the time period over which it is measured
B. cause a greater deadweight loss in the long run when compared to the short run
C. None of these answers
D. cause a greater deadweight loss in the short run when compared to the long run.
Related Mcqs:
- 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 - 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 - 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. - 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 - The graph that shows the relationship between the size of a tax and the tax revenue collected by the government is known as a ?
A. none of these answers
B. Reagan curve
C. Keynesian curve
D. Laffer curve
E. Henry George curve. - The appropriate tax rate to consider gauging how much the tax system distorts incentives and decision making is the ?
A. Proportional tax rate
B. average tax rate
C. marginal tax rate
D. vertical tax rate
E. horizontal tax rate - 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 - When a tax on a good start small and is gradually increased tax revenue ?
A. will fall
B. will rise
C. will first rise and then fall
D. will first fall and then rise - If a tax on a good is doubled the deadweight loss from the tax ?
A. doubles
B. stays the same
C. increase by a factor of four.
D. could rise or fall - 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
