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  3. Liberty ECON 213 Quiz 5 Answers Complete Solutions

Contents

  • 1 Liberty ECON 213 Quiz 5 Answers Complete Solutions
      • 1.0.1 Question 1
      • 1.0.2 Question 2
      • 1.0.3 Question 3
      • 1.0.4 Question 4
      • 1.0.5 Question 5
      • 1.0.6 Question 6
    • 1.1 STATUS
      • 1.1.1 Question 7
      • 1.1.2 Question 8
      • 1.1.3 Question 9
      • 1.1.4 Question 10
      • 1.1.5 Question 11
      • 1.1.6 Question 12
      • 1.1.7 Question 13
      • 1.1.8 Question 14
      • 1.1.9 Question 15
      • 1.1.10 Question 16
      • 1.1.11 Question 17
      • 1.1.12 Question 19
      • 1.1.13 Question 20

Liberty ECON 213 Quiz 5 Answers Complete Solutions

 

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Question 1

Taxing goods with very inelastic demand generates less deadweight loss than taxing goods with very elastic demand because:

Question 2

When looking at a graph, the area under the demand curve and above market price is defined as:

Question 3

If a tax is imposed on a good with a perfectly inelastic supply, the burden of the tax will be borne:

Question 4

Consumers will lose no consumer surplus due to a tax if demand in their market is perfectly elastic because:

Question 5

The deadweight loss from a tax is likely to be less with a good that has:

Question 6

At very low tax rates:

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Question 7

Producers bear the entire incidence of a tax when:

Question 8

Consider the market for socks. The current price of a pair of plain white socks is $5.00. Two consumers, Jeff and Samir, are willing to pay $7.25 and $8.00, respectively, for a pair of plain white socks. Two sock manufacturers are willing to sell plain white socks for as little as $4.00 and $4.15 per pair. What is the total producer AND consumer surplus (i.e., social welfare) in this market?

Question 9

When a tax is imposed on some good, what happens to the amount of the good bought and sold?

Question 10

Ireland’s tax on plastic shopping bags successfully reduced consumer use of these bags because the:

Question 11

A tax creates no deadweight loss only when either supply or demand is:

Question 12

A good with a __________ generates no deadweight loss when taxed.

Question 13

Taxes will almost always cause consumer prices to increase. How much they increase depends on:

Question 14

When the price of a good increases and all else is held constant:

Question 15

How successful would a $1 excise tax on each Little Caesar’s pizza be in generating revenue if Little Caesar’s is the only pizza chain that is taxed?

Question 16

When supply is perfectly elastic, the supply curve is:

Question 17

A tax on milk would likely cause an increase in the:

What is the total amount of producer and consumer surplus (i.e., social welfare) in this market before the tax is imposed?

Question 19

All else being held constant, an increase in the price of a good would necessarily:

Question 20

In a market where supply and demand are both somewhat elastic, but demand is more elastic than supply, consumers will bear less of the burden of a tax because:

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