Microeconomics – Ch. 7

If an excise tax is imposed on automobiles and collected from consumers:

Assuming a normal upward-sloping supply curve and downward-sloping demand curve, if the government imposes a $5 excise tax on leather shoes and collects the tax from the suppliers, the price of leather shoes will:

Suppose the government imposes a $10 per month tax on cell phone service. If the demand curve for cell phone service is perfectly inelastic and the supply curve is upward-sloping, the monthly price for cell phone service will increase by:

If demand and supply are both very inelastic, a decrease in the rate of an excise tax will likely:

If the government wants to minimize the deadweight loss from taxes, it should tax goods for which:

If demand is inelastic, then deadweight loss will:

A lump-sum tax, such as the fee for a driver's license, does not take into consideration:

Taxation according to the ability-to-pay principle is best illustrated in the United States by _____ taxes.

A tax system _____ when it minimizes the direct and indirect costs to the economy of tax collection.

Brianna and Jess must pay an income tax. Both Brianna and Jess pay $1,000 in taxes each year, but Brianna earns $20,000 and Jess earns $10,000. From this information, you can infer that this tax is:

The evidence suggests that federal taxes in the U.S. economy are:

If personal income up to and including $25,000 is not taxed, income of $25,001 to $50,000 is taxed at 10%, and income over $50,000 is taxed at 20%, then a family earning an income of $75,000 will pay an AVERAGE tax rate of:

Suppose the price elasticity of demand is relatively elastic and the price elasticity of supply is relatively inelastic in a specific market. If an excise tax is imposed on this good, who will bear the greater burden of the tax?

In the United States, taxes tend to be regressive at: