Question 1
What is meant by indirect tax?
A.
Higher rates on higher incomes. B.
Fixed amount per unit. C.
Takes larger % of income from low earners. D.
Tax levied on goods and services.
Question 2
A specific tax shifts supply:
A.
Left (parallel) B.
Only demand C.
No effect D.
Right
Question 3
What is meant by ad valorem tax?
A.
Takes larger % of income from low earners. B.
Determines tax incidence — inelastic D means consumers pay more. C.
Higher rates on higher incomes. D.
Percentage of price per unit.
Question 4
What is meant by incidence of tax?
A.
How benefit shared between firms and consumers. B.
How burden shared between firms and consumers. C.
Financial gift to firms not repaid. D.
Determines tax incidence — inelastic D means consumers pay more.
Question 5
With inelastic demand, tax incidence falls mainly on:
A.
Government only B.
Producers only C.
Consumers D.
No one
Question 6
What is meant by ped?
A.
Determines tax incidence — inelastic D means consumers pay more. B.
Higher rates on higher incomes. C.
How benefit shared between firms and consumers. D.
Percentage of price per unit.
Question 7
What is meant by regressive tax?
A.
Takes larger % of income from low earners. B.
Fixed amount per unit. C.
Percentage of price per unit. D.
How burden shared between firms and consumers.
Question 8
A subsidy shifts supply:
A.
Eliminates price B.
Right C.
Left D.
Only demand left
Question 9
What is meant by specific tax?
A.
Fixed amount per unit. B.
How benefit shared between firms and consumers. C.
Determines tax incidence — inelastic D means consumers pay more. D.
Tax shifts S left; subsidy shifts S right.
Question 10
What is meant by supply shift?
A.
Financial gift to firms not repaid. B.
Determines tax incidence — inelastic D means consumers pay more. C.
Tax levied on goods and services. D.
Tax shifts S left; subsidy shifts S right.
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