Explain why it is that how much consumers pay for an excise tax depends on how responsive they are to a given change in market price
What will be an ideal response?
If consumers are more responsive to a given change in market price, then the less they will bear the burden of an excise tax and the more producers will bear the burden of the tax. If consumers are more responsive to a change in the market price induced by an excise tax, then the market price will increase by a smaller amount than if consumers are very responsive to the change. The tax burden is effectively the difference between the market prices before and after the imposition of the tax.
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
Which of the following most clearly indicates that fiscal policy is becoming more restrictive?
a. An increase in the budget deficit relative to GDP b. A reduction in the budget deficit relative to GDP c. An increase in government expenditures as a share of GDP d. A reduction in tax revenues as a share of GDP
The crowding-out effect of an expansionary fiscal policy is likely to be fully or partially offset during a recession.
Answer the following statement true (T) or false (F)
The total burden of a tax is $10,000 and the tax revenue from this tax is $8,000. The excess burden of this tax is
A. $2,000. B. $8,000. C. $10,000. D. $18,000.