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2. Taxes 8 CLICKER QUESTIONS

3. Click on the button to go to the Question Click on the button to go to the problem © 2013 Pearson Question 1 Question 2 Question 3 Question 4 Question 5 Question 7 Question 8 Question 6 Question 9 Question 10 Checkpoint 8.1Checkpoint 8.2 Checkpoint 8.3

4. © 2013 Pearson CHECKPOINT 8.1 A.barley sellers pay the entire tax B.barley buyers pay the entire tax C.the government pays the entire tax D.the tax is split evenly between barley buyers and sellers E.who pays the tax depends on whether the government imposes the tax on barley sellers or on barley buyers. Question 1 Suppose the demand for barley is perfectly elastic. The supply of barley is neither perfectly elastic or perfectly inelastic. If a tax is imposed on barley, ___________.

5. © 2013 Pearson CHECKPOINT 8.1 A.rises; rises B.rises; falls C.falls; rises D.falls; falls E.does not change; rises Question 2 If the government levies a tax on buyers of a good that has an elastic demand and an elastic supply, the price received by sellers _____ and the price paid by buyers ___.

6. © 2013 Pearson CHECKPOINT 8.1 A.$6: $0 B.$3; $3 C.$0; $6 D.$4; $2 E.$2; $4 Question 3 The figure shows the market for delivered pizza. Consumers pay ____ of the tax on pizza and suppliers pay ____ of the tax.

7. © 2013 Pearson CHECKPOINT 8.1 A.a deadweight loss arises B.the seller pays all of the tax C.the buyer pays all of the tax D.the government collects no tax revenue E.sellers reduce the amount that they offer for sale Question 4 When the government imposes a tax on the seller of a good that has a perfectly inelastic supply, _____.

8. © 2013 Pearson CHECKPOINT 8.2 A.paid only by workers B.paid only by employers C.shared equally between workers and employers D.shared between workers and employers with workers paying more than employers E.shared between workers and employers with employers paying more than workers Question 5 In the United States, the tax on labor income is ________.

9. © 2013 Pearson CHECKPOINT 8.2 A.regressive if the average tax rate increases B.progressive if the average tax rate decreases C.proportional if everyone pays the same amount of tax D.regressive if the average tax rate decreases E.efficient if low-income people pays less tax than high- income people. Question 6 If the tax rate is constant as income increases, then the tax is __________.

10. © 2013 Pearson CHECKPOINT 8.2 A.the wage rate paid by employers will fall B.the demand for labor will increase C.employers will hire more workers D.the labor market will be more efficient E.workers will receive a lower wage rate Question 7 If the government raises the social security tax on workers but does not change the social security tax on employers, _________.

11. © 2013 Pearson CHECKPOINT 8.3 A.regressive tax B.benefits C.ability-to-pay D.fairness principle E.equality principle Question 8 The proposition that people should pay taxes according to how easily they can bear the burden is the ____ principle

12. © 2013 Pearson CHECKPOINT 8.3 A.the benefits principle B.the big tradeoff C.vertical equity D.horizontal equity E.the fair-tax principle Question 9 Joan’s income is $60,000 and she pays $6,000 in taxes. Juan’s income is $40,000 and he pays $7,000 in taxes. This situation violates __________.

13. © 2013 Pearson CHECKPOINT 8.3 A.greater; greatest B.greater; least C.smaller; greatest D.smaller; least E.no; least Question 10 Compared to taxes on labor income, taxes on capital income generate ____ deadweight loss and are paid by people who generally have ____ ability to pay.