【国际经济学专题考试试卷八】the Costs of Taxation
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Chapter 8
Application: the Costs of Taxation
TRUE/FALSE
1. Total surplus is always equal to the sum of consumer surplus and producer surplus.
ANS: F DIF: 2 REF: 8-1 NAT: Analytic
LOC: Supply and demand TOP: Total surplus
MSC: Interpretive
2. Total surplus in a market does not change when the government imposes a tax on that market because the loss
of consumer surplus and producer surplus is equal to the gain of government revenue.
ANS: F DIF: 2 REF: 8-1 NAT: Analytic
LOC: Supply and demand TOP: Total surplus
MSC: Interpretive
3. When a tax is imposed on buyers, consumer surplus and producer surplus both decrease.
ANS: T DIF: 2 REF: 8-1 NAT: Analytic
LOC: Supply and demand TOP: Consumer surplus | Producer surplus
MSC: Interpretive
4. When a tax is imposed on buyers, consumer surplus decreases but producer surplus increases.
ANS: F DIF: 2 REF: 8-1 NAT: Analytic
LOC: Supply and demand TOP: Consumer surplus | Producer surplus
MSC: Interpretive
5. When a tax is imposed on sellers, producer surplus decreases but consumer surplus increases.
ANS: F DIF: 2 REF: 8-1 NAT: Analytic
LOC: Supply and demand TOP: Consumer surplus | Producer surplus
MSC: Interpretive
6. When a tax is imposed on sellers, consumer surplus and producer surplus both decrease.
ANS: T DIF: 2 REF: 8-1 NAT: Analytic
LOC: Supply and demand TOP: Consumer surplus | Producer surplus
MSC: Interpretive
7. Taxes affect market participants by increasing the price paid by the buyer and received by the seller.
ANS: F DIF: 1 REF: 8-1 NAT: Analytic
LOC: Supply and demand TOP: Taxes MSC: Applicative
8. Taxes affect market participants by increasing the price paid by the buyer and decreasing the price received by
the seller.
ANS: T DIF: 1 REF: 8-1 NAT: Analytic
LOC: Supply and demand TOP: Taxes MSC: Applicative
9. A tax raises the price received by sellers and lowers the price paid by buyers.
ANS: F DIF: 1 REF: 8-1 NAT: Analytic
LOC: Supply and demand TOP: Efficiency MSC: Interpretive
10. Normally, both buyers and sellers of a good become worse off when the good is taxed.
ANS: T DIF: 2 REF: 8-1 NAT: Analytic
LOC: Supply and demand TOP: Welfare MSC: Interpretive
11. When a good is taxed, the tax revenue collected by the government equals the decrease in the welfare of
buyers and sellers caused by the tax.
ANS: F DIF: 2 REF: 8-1 NAT: Analytic
LOC: Supply and demand TOP: Welfare | Tax revenue
MSC: Interpretive
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