6. Introduction to Taxes and Subsidies

Which of the following quantities decreases in response to a tax imposed on a good?

Taxes are included in which of the following when analyzing market outcomes?

Refer to Figure 6-13. How is the burden of the tax shared between buyers and sellers? Buyers bear:

Which of the following statements concerning taxation is accurate?

After the government imposes an excise tax on a market, what determines the amount of government revenue collected from the tax?

The revenue collected from a tax equals:

Refer to Figure 6-15. In which market will the majority of the tax burden fall on buyers?

Suppose a tax is imposed in each of the four markets shown in the graphs. In which market will consumers bear the largest share of the tax burden?

How does the concept of deadweight loss apply to a per unit tax imposed on a good in a competitive market?

Suppose a \$6 per-unit tax is imposed on a good. If the supply curve is more elastic than the demand curve, how much of the \$6 tax is paid by the suppliers?

In a supply and demand diagram, the vertical distance between points A and B represents a tax in the market. What does this vertical distance specifically measure?

A pollution charge is a form of tax imposed on:

A tax on the buyers of cameras encourages:

Suppose the government increases the size of a tax by 20 percent. The deadweight loss from that tax:

When the government passes a new tax on fast food that takes effect immediately, what is most likely to happen to the equilibrium price and quantity in the fast food market?