ECO 450 WEEK 8 QUIZ 6 CH 11 & 12

ECO 450 WEEK 8 QUIZ 6 CH 11 & 12

ECO 450 WEEK 8 QUIZ 6 CH 11 & 12
TO purchase this tutorial visit following link:
http://mindsblow.com/product/eco-450-week-8-quiz-6-ch-11-12/
Contact us at:
SUPPORT@MINDSBLOW.COM
ECO 450 WEEK 8 QUIZ 6 CH 11 & 12
True/False Questions
  1.   A lump-sum tax results in both income and substitution effects.
  2.   A consumer currently pays $500 a year retail sales taxes. She would be better off if she paid the same amount annually as a lump-sum tax.
  3.   Clothing is sold in perfectly competitive markets where no externalities prevail. An excise tax on clothing will result in a market price for clothing that equals the marginal social benefit and marginal social cost of service.
  4.   Assuming that the income effects are negligible and that beer is sold in a competitive market, a 10?cent per can tax on beer that causes a 10,000 can per month decline in sales will result in an excess burden of $1,000 per month.
  5.   A tax on land results in an income effect on landlords but no substitution effect. Then it follows that the excess burden of a tax on land will be zero.
  6.   The excess burden of a tax on interest income is $5 billion per year. Total interest income per year is $50 billion. The tax currently collects $15 billion in revenue per year. The efficiency-loss ratio of the tax is therefore 0.33.
  7.   A payroll tax results in a difference between the gross wages paid by employers and the net wages received by workers.
  8.   If the market supply of labor services is perfectly inelastic, a tax on labor income will reduce the net wages received by workers by the full amount of the tax per labor hour.
  9.   If a $10 per unit tax is levied on the output of a monopolist, more of that tax will be shifted to consumers than would be the case if the same good were produced by a competitive industry.
10.   A study indicates that taxes in the United States reduce the Gini coefficient for the nation by 10 percent. This implies that taxes make the income...

Similar Essays