« previous next »

Author Question: The excess burden of a tax is a. the amount by which the price of a good increases. b. the loss of ... (Read 47 times)

segrsyd

  • Hero Member
  • *****
  • Posts: 530
on: Jul 1, 2018
The excess burden of a tax is
 a. the amount by which the price of a good increases.
  b. the loss of consumer and producer surplus that is not transferred elsewhere.
  c. The amount by which a person's after-tax income decreases as a result of the new tax.
  d. the welfare costs to firms forced to leave the market due to an inward shift of the demand curve.

Question 2

In the short run, specific taxes on a firm result in
 a. price increases that may not persist in the long run.
  b. an increase in consumer surplus because the tax permits spending in additional government services.
  c. shortages of the good being taxed.
  d. an increase in producer surplus because of the rise in price.


abctaiwan

  • Sr. Member
  • ****
  • Posts: 355
Reply #1 on: Jul 1, 2018
Answer to Question 1

b

Answer to Question 2

a


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

The Centers for Disease Control and Prevention (CDC) was originally known as the Communicable Disease Center, which was formed to fight malaria. It was originally headquartered in Atlanta, Georgia, since the Southern states faced the worst threat from malaria.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

The paper test involves holding a piece of paper near the tailpipe of an idling engine. A good ... The paper test involves holding a piece of paper near the tailpipe of an idling engine. A good ...
Conservation biology arose in response to biodiversity loss Conservation biology arose in response to biodiversity loss
Rice noodles are a good gluten-free substitute for pasta Rice noodles are a good gluten-free substitute for pasta
DID YOU KNOW? DRIVING FAST CAUSES HAIR LOSS DID YOU KNOW? DRIVING FAST CAUSES HAIR LOSS
Loud Music and Hearing Loss (1 of 2) Loud Music and Hearing Loss (1 of 2)
Find the factor demand for labour and the amount of output it will produce. Show all ... Find the factor demand for labour and the amount of output it will produce. Show all ...
Video: Leukemia

For a complete list of videos, visit our video library