MCQs of Economics – Taxation

Refer to Exhibit 4. If there is no tax placed on the produced in this market consumer surplus is the area:

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

Refer to Exhibit 4. If a tax is placed on the product in this market consumer surplus is the area:

Refer to Exhibit 4. If a tax is placed on the product in this market, producer surplus is the area:

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

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

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

Refer to Exhibit 4. If a tax is placed on the product in this market total surplus is the area

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

Refer to Exhibit 4. Which of the following is true with regard to the burden of the tax in Exhibit 4?

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

A tax on petrol is likely to:

Deadweight loss is greatest when

Since the supply of undeveloped land is relatively inelastic a tax on undeveloped land would generate

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

When a tax on a good starts small and is gradually increased tax revenue

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

If a tax on a good is doubled the deadweight loss from the tax

The reduction of tax:

When a tax distorts incentives to buyers and sellers so that fewer goods are produced and sold than otherwise the tax has

If the Pakistani government runs a budget surplus there is:

Sana values a pair of blue jeans at Rs400. If the price is Rs350 Sana buys the jeans and generates consumer surplus of Rs50 Suppose a tax is placed on blue jeans that causes the price of blue jeans to rise to Rs450 Now sana chooses not to buy a pair of

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

An efficient tax:

The marginal tax rate is:

The appropriate tax rate to consider to judge the vertical equity of a tax system is the:

The average tax rate is:

A progressive tax system is one where:

The ability-to-pay principle of taxation suggests that if a tax system is to be vertically equitable it should be:

Which of the following taxes can be supported by the benefits principle of taxation?

The appropriate tax rate to consider to gauge how much the tax system distorts incentives and decision making is the:

A tax system is regarded as horizontally equitable if: