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1) Exemption of food purchases from a sales tax reduces regressivity.
A: True
B: False
2) Federal alcohol excise taxes are designed so that the alcohol content of beer and wine is taxed at a much lower rate than the alcohol content of distilled spirits.
A: True
B: False
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- In State Z, the sales tax rates vary based on the type of goods sold. For clothing items, the tax rate is 5%, and for electronics, the tax rate is 8%. If Sarah purchases a jacket for $50 and a smartphone for $600, how much sales tax does she pay in total? A) $29 B) $44 C) $46 D) $50-Discuss the effects of direct taxes on consumer behavior. (It should be composition and it should include minimum 200 words.)a. Suppese a $0.50 tax, collected by the government from sellers, is levied on each bottle of sugary beverages. Adjust the graph to reflect this change. b. Following the tax, consumers pay a price of and the new equilibrium quantity is while sellers end up with Out of the $0.50 tax, consumers pay The disproportionate burdens of the tax reflect the fact that of the market. The deadweight loss associated with the tax is on each bottle sold, while sellers pay are the less price sensitive side
- The efficiency loss of imposing an excise tax is due to: a. Paying a higher price per unit. b. Producing and consuming fewer unitA) What type of taxation does a Sole proprietorship have? Single or double B) What type of taxation does a LLC have? Single or doubleFederal alcohol excise taxes are designed so that the alcohol content of beer and wine is taxed at a much lower rate than the alcohol content of distilled spirits. A: True B: False
- 3) Are excise taxes, like those on tobacco, gasoline, and alcohol, Progressive, Proportional, or Regressive? Why do you think they are?2. When airfares between Santa Rosa and Los Angeles averages $69, the quantity consumed is 42,500 tickets. One day, an airline tax is levied equal to $10.00 and output falls to 37,000 tickets. Assume that air travelers end up paying 75% of the tax. Total expenditures or sales of air travel will be____. Total revenues generated by airlines will be _____ Total tax revenue generated by the government will be ____ Total taxes paid by air travelers will be ____ Total taxes paid by airlines will be ____ Calculate the price elasticity of demand and & interpret coefficient. Use the general formula, not the mid point formula Calculate the price elasticity of supply and interpret coefficient. Use the general formula, not the mid point formula. How do total sales in the airline market before and after the tax support your answer in (n) and/or (o)?ducer surplu... Practice midterm questions Review 10 9 8 7 PLEASE IGNORE Consider the supply and demand diagram corresponding with this question. Suppose that a per unit tax of $4 is placed on the good in question. At the new equilibrium, how much total tax revenue does the government collect? Price 6 5 SD3 Review 4 3 2 1 0 QEcon Mid-Sem... 1 12.0 2 3 4 Type your numeric answer and submit 5 diagram depicti... 6 7 8 9 D S 10 11 G supply a Confusing Quantity 12
- 9. Taxation - An algebraic approach Suppose the supply of a good is given by the equation Qs = 240P - 240, and the demand for the good is given by the equation Qp = 560-80P, where quantity (Q) is measured in millions of units and price (P) is measured in dollars per unit. The government decides to impose an excise tax of $2.00 per unit on the good, to be paid by the seller. Complete the following table by calculating the equilibrium quantity produced, the equilibrium price consumers pay for the good, and the price received by sellers before and after the tax. Before Tax After Tax Equilibrium Quantity (Millions of units) The government receives Given the information you calculated in the preceding table, the tax incidence on consumers is on producers is per unit of the good. True Equilibrium Price Paid by Consumers (Dollars per unit) Price Received by Sellers (Dollars per unit) O False per unit of the good, and the tax incidence True or False: The equilibrium quantity would have been…1-) Qd=12-2p Qs=2+2p. The government collects a tax of $1 per unit of the good. What is the type of this tax? a) income tax b-) ad valorem c-) specific special consumption tax e) social security taxIncome: 115,000 State Tax Rate: 7 % Federal Income Tax: $0 to $29,000 10% Federal Payroll Tax Rate: 12% $29,001 to $58,300 15% $58,301 to $163,000 29% * Round all answers to 2 decimal places. Do not include any commas or percentage signs.* a) Compute the total tax paid b) What is the marginal tax rate? c) What is the average tax rate?