Economic Surplus and Taxation in Markets Quiz
Explore public finance with questions on tax types, deadweight loss, tax efficiency & more. Test your knowledge now!
#1
What is economic surplus?
The total revenue generated in a market
The difference between total revenue and total cost
The cost of goods and services in an economy
The amount of money collected by the government through taxes
#2
Which of the following is an example of a direct tax?
Sales tax
Income tax
Value-added tax (VAT)
Excise duty
#3
What is the Laffer curve used to illustrate?
The relationship between tax rates and government revenue
The demand and supply in a market
The impact of inflation on an economy
The distribution of income in society
#4
In economics, what does the term 'deadweight loss' refer to?
The loss of consumer surplus due to taxation
The loss of government revenue
The loss of producer surplus due to taxation
The loss of total revenue in a market
#5
Which tax system charges the same percentage of income from all taxpayers, regardless of their income level?
Progressive tax
Regressive tax
Flat tax
Value-added tax (VAT)
#6
What is the 'double taxation' phenomenon in the context of taxation?
Taxing a product twice in the production process
Taxing the same income at both the corporate and individual levels
Tax evasion by individuals and corporations
Imposing two different types of taxes on a single transaction
#7
What is the concept of 'tax incidence' in economics?
The burden of taxation on different groups in society
The total amount of taxes collected by the government
The impact of taxes on inflation
The distribution of tax revenue among government agencies
#8
In the context of externalities, what does a 'Pigovian tax' aim to address?
Encouraging consumption of certain goods
Discouraging consumption of certain goods with negative externalities
Equalizing income distribution
Funding public goods and services
#9
What is the difference between a tax deduction and a tax credit?
Deductions reduce taxable income, while credits directly reduce the tax liability
Deductions directly reduce the tax liability, while credits reduce taxable income
Both deductions and credits reduce taxable income
Neither deductions nor credits have any impact on taxes
#10
What is the 'flypaper effect' in public finance?
The tendency of government expenditures to stick where they are first applied
The impact of inflation on government budgets
The efficiency of tax collection by the government
The responsiveness of consumers to changes in tax rates
Sign In to view more questions.
Quiz Questions with Answers
Forget wasting time on incorrect answers. We deliver the straight-up correct options, along with clear explanations that solidify your understanding.
Popular Quizzes in Public Finance
Popular Quizzes in Economics
Report