简答题Taxes cause deadweight losses because they ( ). A、lead to losses in surplus for consumers and for producers that, when taken together, exceed tax revenue collected by the government B、distort incentives to both buyers and sellers C、prevent buyers and sellers from realizing some of the gains from trade D、All of the above are correct简答题The price elasticities of supply and demand affect ( ). A、both the size of the deadweight loss from a tax and the tax incidence B、the size of the deadweight loss from a tax but not the tax incidence C、the tax incidence but not the size of the deadweight loss from a tax D、neither the size of the deadweight loss from a tax nor the tax incidence简答题Refer to Figure 8-2. The amount of deadweight loss as a result of the tax is ( ). A、5 C、10简答题To measure the gains and losses from a tax on a good, economists use the tools of ( ). A、macroeconomics B、welfare economics C、international-trade theory D、circular-flow analysis简答题When a tax is placed on a product, the price paid by buyers ( ). A、rises, and the price received by sellers rises B、rises, and the price received by sellers falls C、falls, and the price received by sellers rises D、falls, and the price received by sellers falls简答题The amount of deadweight loss from a tax depends upon the ( ). A、price elasticity of demand B、price elasticity of supply C、amount of the tax per unit D、All of the above are correct简答题Refer to Figure 8-1. Suppose the government imposes a tax of P' - P'''. The area measured by I+Y represents the ( ). A、deadweight loss due to the tax B、loss in consumer surplus due to the tax C、loss in producer surplus due to the tax D、total surplus before the tax简答题Deadweight loss measures the loss ( ). A、in a market to buyers and sellers that is not offset by an increase in government revenue B、in revenue to the government when buyers choose to buy less of the product because of the tax C、of equality in a market due to government intervention D、of total revenue to business firms due to the price wedge caused by the tax简答题One result of a tax, regardless of whether the tax is placed on the buyers or the sellers, is that the ( ). A、equilibrium quantity of the good is unchanged B、price the buyer effectively pays is lower C、supply curve for the good shifts upward by the amount of the tax D、tax reduces the welfare of both buyers and sellers简答题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 government can be expressed as ( ). A、T/Q B、T+Q C、TxQ D、(TxQ)/Q简答题For a good that is taxed, the area on the relevant supply-and-demand graph that represents government’s tax revenue is ( ). A、smaller than the area that represents the loss of consumer surplus and producer surplus caused by the tax B、bounded by the supply curve, the demand curve, the effective price paid by buyers, and the effective price received by sellers C、a right triangle D、a triangle, but not necessarily a right triangle简答题A tax levied on the sellers of a good shifts the ( ). A、supply curve upward (or to the left) B、supply curve downward (or to the right) C、demand curve upward (or to the right) D、demand curve downward (or to the left)简答题Other things equal, the deadweight loss of a tax ( ). A、decreases as the size of the tax increases B、increases as the size of the tax increases, but the increase in the deadweight loss is less rapid than the increase in the size of the tax C、increases as the size of the tax increases, and the increase in the deadweight loss is more rapid than the increase in the size of the tax D、increases as the price elasticities of demand and/or supply increase, but the deadweight loss does not change as the size of the tax increases简答题Refer to Figure 8-3. The equilibrium price before the tax is imposed is ( ). A、P1 B、P2 C、P3 D、P4简答题Refer to Figure 8-2. The imposition of the tax causes the price paid by buyers to ( ). A、decrease by 3 C、decrease by 5简答题As the tax on a good increases from 2 per unit to $3 per unit and so on, the ( ). A、tax revenue increases at first, but it eventually peaks and then decreases B、deadweight loss increases at first, but it eventually peaks and then decreases C、tax revenue always increases, and the deadweight loss always increases D、tax revenue always decreases, and the deadweight loss always increases简答题Total surplus with a tax is equal to ( ). A、consumer surplus plus producer surplus B、consumer surplus minus producer surplus C、consumer surplus plus producer surplus minus tax revenue D、consumer surplus plus producer surplus plus tax revenue简答题The decrease in total surplus that results from a market distortion, such as a tax, is called a ( ). A、wedge loss B、revenue loss C、deadweight loss D、consumer surplus loss简答题Refer to Figure 8-1. Suppose the government imposes a tax of P' - P'''. Total surplus before the tax is measured by the area ( ). A、I+Y B、J+K+L+M C、L+M+Y D、I+J+K+L+M+Y简答题A 2 B、downward by less than 2 D、upward by less than $2