Understanding Percentage Tax on Hamburgers

Understanding Percentage Tax on Hamburgers

Assessment

Interactive Video

Business, Economics, Social Studies

10th - 12th Grade

Hard

Created by

Aiden Montgomery

FREE Resource

The video tutorial explores the concept of taxing hamburgers, transitioning from a fixed dollar tax to a percentage-based tax. It examines how a 20% tax affects the supply curve from both consumer and producer perspectives, highlighting the increased costs for consumers and the opportunity costs for producers. The tutorial further discusses the economic inefficiencies introduced by taxation, such as reduced equilibrium quantity and dead weight loss. It concludes with an analysis of government revenue and the impact on consumer and producer surplus.

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10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the typical form of consumption tax?

A fixed dollar amount

A tax based on weight

A percentage of the price

A flat rate for all goods

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why do producers need to receive at least $2 for the first hamburger?

Because it is the cost of production

Because it is the market price

Because it covers their opportunity cost

Because it includes a 20% tax

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How much does a consumer pay for a hamburger priced at $3 with a 20% tax?

$3.60

$3.20

$4.00

$3.00

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What happens to the supply curve when a percentage tax is applied?

It remains unchanged

It shifts downwards

It shifts upwards by a percentage

It shifts upwards by a fixed amount

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a dead weight loss in the context of taxation?

A gain in consumer surplus

An increase in economic activity

A loss in consumer and producer surplus

A loss in government revenue

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is taxation generally considered inefficient?

It increases producer surplus

It has no effect on the market

It reduces economic activity

It increases consumer surplus

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the equilibrium quantity of hamburgers after the tax is applied?

2 million hamburgers

5 million hamburgers

3 million hamburgers

4 million hamburgers

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