Economics Mcqs Archives | Page 241 of 327

A tax on petrol is likely to ?

September 9, 2021May 28, 2019 by admin

A tax on petrol is likely to ?

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.

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

September 9, 2021May 28, 2019 by admin

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

Refer to Exhibit 4. If a tax is placed on the product in this market total surplus is the area ?

September 9, 2021May 28, 2019 by admin

Refer to Exhibit 4. If a tax is placed on the product in this market total surplus is the area ?

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

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

September 9, 2021May 28, 2019 by admin

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

Refer to Exhibit 4. If a tax is placed on the product in this market, producer surplus is the area?

September 9, 2021May 28, 2019 by admin

Refer to Exhibit 4. If a tax is placed on the product in this market, producer surplus is the area?

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

Refer to Exhibit 4. If there is no tax placed on the product in this market, producer surplus is the area ?

September 9, 2021May 28, 2019 by admin

Refer to Exhibit 4. If there is no tax placed on the product in this market, producer surplus is the area ?

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

Which of the following taxes can be supported by the benefits principle of taxation ?

September 9, 2021May 28, 2019 by admin

Which of the following taxes can be supported by the benefits principle of taxation ?

A. All these answers can be supported by the benefits principle of taxation
B. Progressive income taxes used to pay for national defense
C. Petrol taxes used to pay for roads
D. property taxes used to pay for policies and the court system

A tax system is regarded as horizontally equitable if ?

September 9, 2021May 28, 2019 by admin

A tax system is regarded as horizontally equitable if ?

A. all taxpayers pay the same amount of tax
B. taxes on all goods are levied at the same rate
C. taxes are as low as possible
D. the system comprises only lump sum taxes
E. taxpayers with similar abilities to pay taxes pay the same amount

The appropriate tax rate to consider gauging how much the tax system distorts incentives and decision making is the ?

September 9, 2021May 28, 2019 by admin

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

The ability-to-pay principle of taxation suggests that if a tax system is to be vertically equitable it should be ?

September 9, 2021May 28, 2019 by admin

The ability-to-pay principle of taxation suggests that if a tax system is to be vertically equitable it should be ?

A. efficient
B. progressive
C. regressive
D. proportional