If a tax on a good is doubled the deadweight loss from the tax ?

Related Mcqs:

1. Refer to Exhibit 4. If a tax is placed on the product in this market. deadweight loss is the area ?

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

2. Which of the following would likely cause the greatest deadweight loss ?

   A. a tax on salt
   B. a tax on cigarettes
   C. a tax on petrol
   D. a tax on cruise line tickets

3. Deadweight loss is greatest when ?

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

4. To aid its calculator producers, suppose that the government provides them a subsidy of $10 for each calculator produced The amount of imports now equals _____ and the deadweight loss of the subsidy to the Canadian economy equals _________?

   A. 20 calculator, $50
   B. 20 calculator, $100
   C. 25 calculator, $50
   D. 25 calculator, $100

5. 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

6. 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

7. The deadweight cost of the tariff equals ?

   A. $10,000
   B. $25,000
   C. $50,000
   D. $75,000

8. 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

9. 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

10. 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