Question 1
A subsidy shifts supply:
A.
Only demand left B.
Left C.
Eliminates price D.
Right
Question 2
A specific tax shifts supply:
A.
Left (parallel) B.
No effect C.
Right D.
Only demand
Question 3
What is meant by regressive tax?
A.
Determines tax incidence — inelastic D means consumers pay more. B.
Percentage of price per unit. C.
Takes larger % of income from low earners. D.
Financial gift to firms not repaid.
Question 4
What is meant by subsidy?
A.
How burden shared between firms and consumers. B.
How benefit shared between firms and consumers. C.
Takes larger % of income from low earners. D.
Financial gift to firms not repaid.
Question 5
What is meant by indirect tax?
A.
Tax levied on goods and services. B.
Tax shifts S left; subsidy shifts S right. C.
How burden shared between firms and consumers. D.
Takes larger % of income from low earners.
Question 6
What is meant by progressive tax?
A.
Higher rates on higher incomes. B.
Tax shifts S left; subsidy shifts S right. C.
How burden shared between firms and consumers. D.
Percentage of price per unit.
Question 7
What is meant by incidence of subsidy?
A.
Fixed amount per unit. B.
Percentage of price per unit. C.
Tax shifts S left; subsidy shifts S right. D.
How benefit shared between firms and consumers.
Question 8
With inelastic demand, tax incidence falls mainly on:
A.
No one B.
Government only C.
Producers only D.
Consumers
Question 9
What is meant by supply shift?
A.
Takes larger % of income from low earners. B.
Fixed amount per unit. C.
Higher rates on higher incomes. D.
Tax shifts S left; subsidy shifts S right.
Question 10
What is meant by specific tax?
A.
Determines tax incidence — inelastic D means consumers pay more. B.
Fixed amount per unit. C.
Tax levied on goods and services. D.
Higher rates on higher incomes.
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