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the social security tax is a tax on
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labor
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If T represents the size of the tax on a good and Q represents the quantity of the good that is sold, total tax revenue received by the government can be expressed as
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T x Q
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the amount of deadweight loss as a result of the tax is
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$2.5
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the vertical distance between points E and F represents a tax in the market. The per-unit burden of the tax on buyers is
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$3
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the amount of tax on each unit of the good is
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$5
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total surplus without the tax is
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$10, and total surplus with the tax is $7.5
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producer surplus without the tax is
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$4, and producer surplus with the tax is $1
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consumer surplus without the tax is
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$6, and consumer surplus with the tax is $1.5
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graph (a) and graph (b) each illustrate a $4 tax placed on a market. in comparison to graph (a), graph (b) illustrates which of the following statements?
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When demand is relatively inelastic, the deadweight loss of a tax is smaller than when demand is relatively elastic.
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as a result of the tax,
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the market experiences a deadweight loss of $80
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suppose the government imposes a tax on cheese. the deadweight loss from this tax will likely be greater in the
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eighth year after it is imposed than in the first year after it is imposed because demand and supply will be less elastic in the first year than in the eighth year
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when a tax is levied on a good, the buyers and sellers of the good share the burden,
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regardless of how the tax is levied
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the size of a tax and the deadweight loss that results from the tax are
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positively related
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the deadweight loss from a tax per unit of good will be smallest in a market with
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inelastic supply and inelastic demand
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