Most tariffs have ?

A. Only revenue effects
B. Only protective effects
C. Both protective and revenue effects
D. Neither protective or revenue effects

The appropriate tax rate to consider judging the vertical equity of a tax system is the ?

A. Marginal tax rate
B. Average tax rate
C. Horizontal tax rate
D. Proportional tax rate

A progressive tax system is one where ?

A. Marginal tax rates are high.
B. Higher income taxpayers pay more taxes than do lower income taxpayers.
C. Marginal tax rates are low.
D. Higher income taxpayers pay a greater percentage of their income in taxes than do lower income taxpayers.

A tax of 20 rupees per unit of imported cheese would be an example of a (an) ?

A. Compound tariff
B. Effective tariff
C. Ad valorem tariff
D. Specific tariff

When a tax on a good start small and is gradually increased tax revenue ?

A. Will fall
B. Will rise
C. Will first rise and then fall
D. Will first fall and then rise

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

A. Doubles
B. Stays the same
C. Increase by a factor of four.
D. Could rise or fall

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

A. Caused a deadweight loss
B. Decreased equity
C. Generated no tax revenue
D. Increased efficiency

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. The deadweight has demonstrated
B. The ability-to-pay principle
C. The benefits principle
D. Horizontal equity

An efficient tax ?

A. Minimizes the administrative burden form the tax
B. Does all the things describe in these answers
C. Raises revenue at the smallest possible cost to taxpayers.
D. Minimize the deadweight loss from the tax.

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

A. C + f
B. A
C. B
D. C