Economics MCQs

Page No. 360

A tax for which high income taxpayers pay a smaller fraction of their income than do low income taxpayers is known as ?


a a proportional tax


b a regressive tax


can equitable tax


da progressive tax


View Answer a regressive tax

If the Pakistani government runs a budget surplus there is ?


aan excess of government receipts over government spending.


ban equality of government spending and receipts.


c a surplus of government workers.


d an excess of government spending over government receipts.



The reduction of tax ?


a will have no impact on tax revenue.


bwill always reduce tax revenue regardless of the prior size of the tax


ccould increase tax revenue if the tax had been extremely high


dcauses a market to become less efficient



The graph that shows the relationship between the size of a tax and the tax revenue collected by the government is known as a ?


a none of these answers


bReagan curve


cKeynesian curve


d Laffer curve


View Answer Laffer curve

Which of the following is true with regard to a tax on labor income? Taxes on labor income tend to encourage ?


athe unscrupulous to enter the underground economy


b the elderly to retire early.


call the things described in these answers.


d second earners to stay home.



Deadweight loss is greatest when ?


a supply is elastic, and demand is perfectly inelastic


bdemand is elastic, and demand is perfectly inelastic


cboth supply and demand are relatively inelastic


dboth supply and demand are relatively elastic



Which of the following would likely cause the greatest deadweight loss ?


a a tax on salt


b a tax on cigarettes


c a tax on petrol


da tax on cruise line tickets



Refer to Exhibit 4. If a tax is placed on the product in this market. deadweight loss is the area ?


aB + C + E + F


b E + F


cB + C


dA + B + C + D


View Answer E + F

Refer to Exhibit 4. If there is no tax placed on the product in this market total surplus is the area ?


aB + C + E + F


bE + F


cA + B + C + D


dA + B + C + D + E + F


View Answer A + B + C + D + E + F

Refer to Exhibit 4. If a tax is placed on the product in this market tax revenue paid by the buyers is the area ?


aB + C + E + F


bB


c B + C


dA


View Answer B

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