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49. What is the burden of the tax on producers? (A) $2.50. (B) $5.00. (C) $7.50. (D) $10. 50. What is the burden of the

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49. What is the burden of the tax on producers? (A) $2.50. (B) $5.00. (C) $7.50. (D) $10. 50. What is the burden of the tax on consumers? (A) $2.50. (B) $5.00. (C) $7.50. (D) $10. 51. What is the deadweight loss from the tax? (A) $185. (B) $200. (C) $265. (D) $370. 52. Which of the following policies would contravene the Canadian Constitution? (A) The federal government starts an agricultural loans program. (B) The Government of Quebec slashes university tuition. (C) The Government of Alberta enacts export tariffs for oil being shipped to the United States. (D) The federal government commits funding to bring safe drinking water to indigenous reserves. 19 53. Supply-side economics is a theory which states that cutting taxes increases economic growth and government tax revenues. Which of the following is an assumption underlying these claims? (A) That the elasticities of demand and supply are shared equally between consumers and producers. (B) That the tax rate is to the right of Ta: on the Laffer curve. (C) That there is not too much of a government debt to cause bond markets to spiral out of control. (D) That the Production Possibilities Frontier exhibits a diminishing Marginal Rate of Transformation. 54. The Canadian government is set to increase immigration, with Canada planning to take in 400,000 immigrants per year, starting in 2021.3 Suppose that 60 percent of these immigrants have universtiy degrees. If demand for their labour remains unchanged, what will this do to the wages and salaries of Canadians with university degrees? (A) Wages and salaries will increase. (B) Wages and salaries will stay the same. (C) Wages and salaries will decrease. (D) It's more important to be a Chad than it is to be correct. 55. According to Edward Green, former director of Harvard University's AIDS Preven- tion Project, the distribution of condoms in sub-Saharan African caused an increase in AIDS and HIV.4 Why might this be the case, from an economic point of view? (A) Condoms cost money, and are too expensive for many Africans, and therefore they have unprotected sex. (B) Condoms lower the opportunity cost of extramarital sex, encouraging more of it and increasing the risk of STIs. (C) Condom campaigns accompany advertising that encourages loose sexual activity, which raises STIs. (D) Stop taking VIAGRA and call your healthcare provider right away if you have any sudden vision loss. 3 See https: / / www.aljazeera.com/ news / 2020 f 10/ 30 / canada-aims tobring-inover- 1-2immigrants over- next-3- years. 4Green, Edward. Broken Promises: How the AIDS Establishment Hes Betmyed the Developing World (Abingdon, UK: Routledge, 2011). 20 The next seven questions deal with the following supply and demand equa- tions. Supply: p = 10 + q. Demand: p = 130 2g. 56. What is the market equilibrium? (A) p* = 50; q* = 40. (B) p: = 56.7; (1* = 46.7. (C) p* = 40; (1* = 50. (D) 13* = 130; q* = 120. 57. At the market equilibrium, what is the elasticity of demand? (A) -0.625. (B) -0.607. (C) -1.60. (D) -0.542. 58. What is the Total Surplus? (A) $2,400. (B) $3,200. (C) $3,775. (D) $4,800. 59. Suppose that the government imposes a price ceiling of $20. What is the consumer surplus under this price ceiling? (A) $1,000. (B) $1,600. (C) $2,400. (D) $4,800. 21

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