Question 32

Stattutoory incidence of a tax deals with

		the amount of revenue left over after taxes.
		the amount of taxes paid after accounting for inflation.
		the person(s) legally responsible for paying the tax.
		the amount of tax revenue generated after a tax is imposed.

5 points

Question 33

The difference between stattutoory incidence and economic incidence of a tax is:

		Tax evasion
		Tax shifting
		Tax avoidance
		Tax amnesty

5 points

Question 34

A progressive tax means the percentage of income paid as taxes:

		increases as income increases
		decreases as income increases
		remains the same as income increases
		all of the above

5 points

Question 35

When a tax is regressive, as a person's income raises, the tax rate:

		decreases and then increases
		decreases
		increases
		increase and then decreases

5 points

Question 36

Partial equilibrium is:

		exactly like general equilibrium.
		studying individual markets.
		studying only the supply side of the market.
		examining the demand side of the market.

1 points

Question 37

A fifty cent tax imposed on a pack of cigarettes is example of:

		a unit tax
		an ad valorem tax
		a retail sales tax
		wholesale tax

5 points

Question 38

The tax-induced difference between the price paid by consumers and the price received by producers is

		the tax wedge.
		the tax difference.
		the stattutoory incidence.
		the supply side effect.

5 points

Question 39

Ad valorem taxes are:

		are taxes on advertising.
		are based on the number of units sold.
		are based on the dollar value of the good.
		all of the above.

1 points

Question 40

General equilibrium refers to

		examining markets without specific information.
		finding equilibrium from general information.
		pricing goods at their shadow price.
		the study of how various markets are interrelated.