Make sure to give reasonable reasons

5 Efficiency and Equity

Table 5.2.1+ Quantity Marginal Cost (units) (dollars) UPON31) A $10 per-unit tax on MP3 players raises the equilibrium price paid by consumers by $5. The quantity sold before the tax was 5,000 per year. The revenue from the tax is+ A) zero.+ B) positive but less than $50,000 per year.+ C) $50,000 per year.+ D) more than $50,000 per year.+ E) greater the more elastic is demand.+ Answer: B+ Diff: 3 Type: MC+ Topic: Taxes+50) As the quantity of hot dogs demanded increases, + A) the marginal social benefit from a hot dog decreases.+ B) the marginal social cost of a hot dog decreases.+ C) the quantity of hot dogs supplied increases.+ D) the hot dog market becomes more efficient.+ E) the hot dog market becomes less efficient. +32) A 3 cents per-unit tax on bread leads to no change in the quantity bought and sold. The tax is paid + A) completely by the sellers.+ B) completely by the buyers.+ C) equally by the buyers and sellers.+ D) mostly but not completely by the buyers.+ E) completely by either the sellers or the buyers; we cannot tell without more information.+ Answer: E+ Diff: 3 Type: MC+ Topic: Taxes+11]:When speaking of the price of the good measured on the horizontal axis relative to the price of the good measured on the vertical axis, which statementis true? +' A} The steeper the slope of the budget line, the more expensive the good measured on the horizontal axis.+' B} The steeper the slope of the budget line, the less expensive the good measured on the horizontal axis. dJ C} The steeper the slope of the budget line, the more expensive the good measured on the vertical axis. +' D} The slope of the budget lineis independent of relative prices. +' E} The atter the slope of the budget line, the more expensive the good measured on the horizontal axis. +' 24) Zarina can afford to buy 3 tomatoes and no toothbrushes, or 2 toothbrushes and no tomatoes. The relative price of a toothbrush is + A) 2/3 of a tomato. + B) 3/2 tomatoes. + C) 6 tomatoes. + D) 1/6 of a tomato. + E) impossible to calculate without additional information. +39) Junkfood Jill spends all of her income on jellybeans and Jolt cola. Suppose that Jill's income is $30, the price of a bag of jellybeans is $6, and the price of a bottle of Jolt cola is $2. Which of the following combinations of jellybeans and Jolt cola lies inside Jill's budget line?+ A) 2 bags of jellybeans and 8 bottles of Jolt+ B) 5 bags of jellybeans and 0 bottles of Jolt+ C) 4 bags of jellybeans and 4 bottles of Jolt+ D) 3 bags of jellybeans and 6 bottles of Jolt+ E) 5 bags of jellybeans and 15 bottles of Jolt+38) Refer to Table 5.2.1. If the price is $6 a unit, the producer surplus on the third unit is+ A) $3.+ B) $6.+ C) $5.+ D) $4.+ E) $2.+