#1
Which of the following is an example of an excise tax?
Sales tax on groceries
Property tax on real estate
Tax on gasoline
Income tax on wages
#2
Who ultimately bears the burden of an excise tax?
Consumers
Producers
Government
Middlemen
#3
Which of the following is NOT a characteristic of an excise tax?
It is specific to certain goods or services
It is usually a percentage of the price of the good
It is often levied on producers
It can be used to discourage consumption
#4
Which of the following best describes an excise tax?
A tax levied on the sale of goods and services
A tax levied on specific goods produced or consumed within a country
A tax imposed on the income of individuals and businesses
A tax collected at the point of purchase, typically included in the price of a good
#5
When an excise tax is imposed on a good, what generally happens to the price paid by consumers?
The price decreases
The price increases
The price remains the same
The price fluctuates unpredictably
#6
What is the main economic concept behind tax incidence?
Supply and demand
Elasticity of demand
Production costs
Market equilibrium
#7
If the demand for a good is relatively inelastic, who bears most of the burden of an excise tax?
Consumers
Producers
Both consumers and producers share it equally
It depends on the tax rate
#8
In which situation would a tax on producers have the same effect as a tax on consumers?
When demand is perfectly elastic
When demand is perfectly inelastic
When supply is perfectly elastic
When supply is perfectly inelastic
#9
How does the long-run incidence of an excise tax differ from the short-run incidence?
There is no difference
In the long run, producers bear more of the tax burden
In the long run, consumers bear more of the tax burden
It depends on the elasticity of supply and demand
#10
Which of the following factors determines the incidence of an excise tax?
The level of government revenue required
The elasticity of supply and demand
The political ideology of the ruling party
The geographic location of the taxed goods
#11
What is the relationship between the price elasticity of demand and the incidence of an excise tax?
There is no relationship
As elasticity increases, consumers bear more of the tax burden
As elasticity decreases, consumers bear more of the tax burden
Producers always bear the entire tax burden
#12
Which of the following is an example of a good with relatively inelastic demand?
Smartphones
Coffee
Salt
Luxury cars
#13
How does the elasticity of supply affect the incidence of an excise tax?
It has no effect on tax incidence
As elasticity of supply increases, consumers bear more of the tax burden
As elasticity of supply increases, producers bear more of the tax burden
It depends on the elasticity of demand
#14
What is the economic rationale behind imposing an excise tax on goods like cigarettes and alcohol?
To encourage consumption
To generate revenue for the government
To discourage consumption due to negative externalities
To promote economic growth
#15
How does the elasticity of supply influence the incidence of an excise tax?
Higher elasticity of supply leads to higher tax incidence on producers
Higher elasticity of supply leads to lower tax incidence on producers
Elasticity of supply has no effect on tax incidence
Higher elasticity of supply leads to higher tax incidence on consumers