Chapter 08a test bank

1、 Chapter 8/Application: The Costs of Taxation v 89 Chapter 8Application: The Costs of TaxationTest AANSWER: b.demand curve downward or to the left.TYPE: M KEY1: D SECTION: 1 OBJECTIVE: 1 RANDOM: Y.A tax levied on the buyers of a product shifts thea.demand curve upward or to the right.b.demand curve

2、downward or to the left.c.supply curve upward or to the left.d.supply curve downward or to the right.ANSWER: b.demand curve downward or to the left.TYPE: M KEY1: D SECTION: 1 OBJECTIVE: 1 RANDOM: YANSWER: d.both buyers and sellers are worse off.TYPE: M KEY1: D SECTION: 1 OBJECTIVE: 1 RANDOM: Y.When

3、a tax is levied on a gooda.buyers are worse off but sellers are not.b.sellers are worse off but buyers are not.c.neither buyers nor sellers are worse off.d.both buyers and sellers are worse off.ANSWER: d.both buyers and sellers are worse off.TYPE: M KEY1: D SECTION: 1 OBJECTIVE: 1 RANDOM: YANSWER: c

4、.buyers and sellers share the burden of the tax regardless of which party it is levied on.TYPE: M KEY1: C SECTION: 1 OBJECTIVE: 1 RANDOM: Y.When a tax on a good is enacted,a.sellers always bear the full burden of the tax.b.buyers always bear the full burden of the tax.c.buyers and sellers share the

5、burden of the tax regardless of which party it is levied on.d.sellers bear the full burden if the tax is levied on them, but buyers bear the full burden if the tax is levied on them.ANSWER: c.buyers and sellers share the burden of the tax regardless of which party it is levied on.TYPE: M KEY1: C SEC

6、TION: 1 OBJECTIVE: 1 RANDOM: YANSWER: b.causes the size of the market for the good to shrink.TYPE: M KEY1: C SECTION: 1 OBJECTIVE: 1 RANDOM: Y.A tax placed on a gooda.causes the price of the good to fall.b.causes the size of the market for the good to shrink.c.affects buyers of the good, but not sel

7、lers.d.is usually borne entirely by the seller of the good.ANSWER: b.causes the size of the market for the good to shrink.TYPE: M KEY1: C SECTION: 1 OBJECTIVE: 1 RANDOM: YANSWER: d.a wedge is placed between the price buyers pay and the price sellers receive.TYPE: M KEY1: C SECTION: 1 OBJECTIVE: 1 RA

8、NDOM: Y.When a tax is levied on a gooda.the market price falls because demand declines.b.the market price falls because supply falls.c.the market price rises because demand falls.d.a wedge is placed between the price buyers pay and the price sellers receive.ANSWER: d.a wedge is placed between the pr

9、ice buyers pay and the price sellers receive.TYPE: M KEY1: C SECTION: 1 OBJECTIVE: 1 RANDOM: YANSWER: ducer surplus.TYPE: M KEY1: D SECTION: 1 OBJECTIVE: 1 RANDOM: Y.The benefit received by the sellers of a good in a market is measured ducer surplus.b.consumer surplus.c.the amount it cos

10、ts producers to produce the good.d.the amount buyers pay for the good in excess of the amount the good is actually worth.ANSWER: ducer surplus.TYPE: M KEY1: D SECTION: 1 OBJECTIVE: 1 RANDOM: YANSWER: c.P1.TYPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: Y.According to the graph,

11、the equilibrium market price before the tax is imposed isa.P3.b.P2.c.P1.d.impossible to determine.ANSWER: c.P1.TYPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: YANSWER: a.P3.TYPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: Y.According to the graph, the price buyers pay

12、after the tax isa.P3.b.P2.c.P1.d.impossible to determine.ANSWER: a.P3.TYPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: YANSWER: b.P2.TYPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: Y.According to the graph, the price sellers receive after the tax isa.P3.b.P2.c.P1.d.imp

13、ossible to determine.ANSWER: b.P2.TYPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: YANSWER: c.A + B + C.TYPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: Y.According to the graph, consumer surplus before the tax was levied is represented by areaa.A.b.F.c.A + B + C.d.D +

14、E + F.ANSWER: c.A + B + C.TYPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: YANSWER: d.D + E + F.TYPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: Y.According to the graph, before the tax the producer surplus is represented by areaa.A.b.F.c.A + B + C.d.D + E + F.ANSWER: d

15、.D + E + F.TYPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: YANSWER: c.B + C.TYPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: Y.According to the graph, the tax caused a reduction in consumer surplus represented by areaa.A.b.F.c.B + C.d.D + E.ANSWER: c.B + C.TYPE: M KEY1

16、: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: YANSWER: d.D + E.TYPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: Y.According to the graph, the tax caused a reduction in producer surplus represented by areaa.A.b.F.c.B + C.d.D + E.ANSWER: d.D + E.TYPE: M KEY1: G SECTION: 1 OBJECTIV

17、E: 1 GRAPH FORMAT: M RANDOM: YANSWER: c.B + D.TYPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: Y.According to the graph, the benefits to the government (total tax revenue) are represented by areaa.A + B.b.C + E.c.B + D.d.D + F.ANSWER: c.B + D.TYPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GR

18、APH FORMAT: M RANDOM: YANSWER: d.A + B + D + F.TYPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: Y.According to the graph, the total surplus (consumer, producer, and government) with the tax is represented by areaa.C + E.b.A + B + C.c.D + E + F.d.A + B + D + F.ANSWER: d.A + B + D + F.T

19、YPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: YANSWER: a.C + E.TYPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: Y.According to the graph, the loss in total welfare resulting from the levying of the tax is represented by areaa.C + E.b.A + B + C.c.D + E + F.d.A + B + D

20、+ F.ANSWER: a.C + E.TYPE: M KEY1: G SECTION: 1 OBJECTIVE: 1 GRAPH FORMAT: M RANDOM: YANSWER: b.reduction in total surplus that results from a tax.TYPE: M KEY1: D SECTION: 1 OBJECTIVE: 1 RANDOM: Y.Deadweight loss is thea.decline in government revenue when taxes are reduced in a market.b.reduction in

21、total surplus that results from a tax.c.reduction in consumer surplus when a tax is placed on buyers.d.loss of profit to businesses when a tax is imposed.ANSWER: b.reduction in total surplus that results from a tax.TYPE: M KEY1: D SECTION: 1 OBJECTIVE: 1 RANDOM: YANSWER: b.greater the deadweight los

22、s of a tax.TYPE: M KEY1: D SECTION: 2 OBJECTIVE: 2 RANDOM: Y.The greater the elasticities of demand and supply thea.smaller the deadweight loss from a tax.b.greater the deadweight loss from a tax.c.less intrusive a tax will be on a market.d.more equitable the distribution of a tax between buyers and

23、 sellers.ANSWER: b.greater the deadweight loss from a tax.TYPE: M KEY1: D SECTION: 2 OBJECTIVE: 2 RANDOM: YANSWER: a.labor.TYPE: M KEY1: D SECTION: 2 OBJECTIVE: 2 RANDOM: Y.Economists generally agree that the most important tax in the U.S. economy is the tax ona.labor.b.consumption.c.personal proper

24、ty.d.income.ANSWER: a.labor.TYPE: M KEY1: D SECTION: 2 OBJECTIVE: 2 RANDOM: YANSWER: b.entirely by the landowners.TYPE: M KEY1: C SECTION: 2 OBJECTIVE: 2 RANDOM: Y.If the supply of land is fixed, a tax on land would be paida.only by workers.b.entirely by the landowners.c.entirely by the renters or u

25、sers of the land.d.partly by landowners and partly by land users.ANSWER: b.entirely by the landowners.TYPE: M KEY1: C SECTION: 2 OBJECTIVE: 2 RANDOM: YANSWER: c.the deadweight loss from the tax increases.TYPE: M KEY1: C SECTION: 3 OBJECTIVE: 3 RANDOM: Y.As the size of a tax increasesa.the deadweight

26、 loss from the tax remains constant.b.the deadweight loss from the tax declines.c.the deadweight loss from the tax increases.d.no one knows how the deadweight loss changes because no tax has ever been reduced.ANSWER: c.the deadweight loss from the tax increases.TYPE: M KEY1: C SECTION: 3 OBJECTIVE:

27、3 RANDOM: YANSWER: b.large budget deficits.TYPE: M KEY1: D SECTION: 3 OBJECTIVE: 3 RANDOM: Y.One side-effect of the tax cuts made during Ronald Reagans terms as president wasa.increased tax revenues.b.large budget deficits.c.small budget surpluses.d.decreased government spending.ANSWER: b.large budg

28、et deficits.TYPE: M KEY1: D SECTION: 3 OBJECTIVE: 3 RANDOM: YANSWER: d.supply-side economics.TYPE: M KEY1: C SECTION: 3 OBJECTIVE: 3 RANDOM: Y.The views held by Arthur Laffer and Ronald Reagan that cuts in tax rates would encourage people to increase the quantity of labor they supplied became known

29、asa.Laffer economics.b.welfare economics.c.microeconomics.d.supply-side economics.ANSWER: d.supply-side economics.TYPE: M KEY1: C SECTION: 3 OBJECTIVE: 3 RANDOM: YANSWER: c.on the negatively-sloped part of the Laffer curve.TYPE: M KEY1: D SECTION: 3 OBJECTIVE: 4 RANDOM: Y.The higher a countrys tax rates the more likely that country will bea.above the Laffer curve.b.on the top of the Laffer curve.c.on the negatively-sloped part of the Laffer curve.d.on the positi