Economics Chapter 20 2 Can Describe Who Bears The Burden

83. We can describe who bears the burden of a tax by using the concept of:

84. The burden a tax places on buyers versus sellers is:

85. The burden of a tax placed on buyers is:

86. When a tax is placed on sellers, the actual incidence:

87. The statutory incidence of the tax means who:

88. The economic incidence of the tax means who:

89. The statutory incidence of a tax ______________ the economic incidence of the tax.

90. The side of the market that is more inelastic:

91. The side of the market that will bear a greater share of the tax burden is the side that:

92. When policy makers are deciding where to place the statutory incidence of a tax, it is helpful to

remember that:

93. Policymakers have the ability to affect:

94. Taxes are generally classified into these three categories:

95. Which of the following is not one of the general classifications of taxes?

96. A proportional tax:

97. A progressive tax:

98. A lump-sum tax:

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99. A flat tax:

100. A regressive tax:

101. A tax that takes the same percentage of tax from all taxpayers is called a:

102. A tax that takes the same percentage of tax from all taxpayers is called a:

103. A tax that requires those with low incomes to pay a smaller percentage of their income than high-

income earners is a:

104. A tax that is levied in such a way that low-income taxpayers pay a greater proportion of their income

toward taxes than do high-income taxpayers is called a:

105. If Bob earns $20,000 per year and Sue earns $100,000 a year, and there is a flat tax of 10 percent

imposed, then Bob would pay __________, Sue would pay ___________, and this is a __________ tax.

106. If Bob earns $20,000 a year and pays $2,000 in taxes, and Cindy earns $40,000 a year and pays

$4,000 in taxes, there is a _______________ tax in place.

107. If Bob earns $20,000 a year and pays $2,000 in taxes, and Cindy earns $40,000 a year and pays

$4,000 in taxes, then Bob’s tax rate is _______ and Cindy’s tax rate is_____.

108. If Janice earns $50,000 a year and pays $500 in taxes, and Cam earns $100,000 a year and pays

$20,000 in taxes, the tax system must be:

109. If Janice earns $50,000 a year and pays $500 in taxes, and Cam earns $100,000 a year and pays

$20,000 in taxes, then Janice’s effective tax rate is _____ and Cam’s effective tax rate is____.

110. If Jen earns $80,000 a year and pays $16,000 in taxes, and Gary earns $100,000 a year and pays

$16,000 a year in taxes, the tax system must be:

111. One of the basic trade-offs inherent in designing a tax system is between:

112. In general, the most efficient taxes:

113. In general, the more equitable the incidence of a tax system is the:

114. Over 90 percent of the U.S. government’s tax revenues come from:

115. The two sources that contribute roughly 80 percent together of total tax revenues are:

116. The third largest source of government tax revenues that contributes roughly 10 percent to total

revenues is:

117. An income tax is a tax:

118. A capital gains tax is a tax on the:

119. A payroll tax is a tax on the:

120. A sales tax is a tax on the:

121. The largest source of income for most people is:

122. The marginal tax rate refers to the tax rate charged on the:

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123.

Single Tax

Bracket ($)

Marginal Tax

Rate (%)

1-10,000

10

10,001–

40,000

15

40,001–

90,000

25

90,001–

150,000

27.5

For a person earning $15,000, the marginal tax rate for the amount from 10,001 to $15,000 is:

124.

Single Tax

Bracket ($)

Marginal Tax

Rate (%)

1-10,000

10

10,001–

40,000

15

40,001–

90,000

25

90,001–

150,000

27.5

For a person earning $15,000, the average tax rate is:

125.

Single Tax

Bracket ($)

Marginal Tax

Rate (%)

1-10,000

10

10,001–

40,000

15

40,001–

90,000

25

90,001–

150,000

27.5

For a person earning $15,000, the marginal tax amount from 10,001 to $15,000 is:

126.

Single Tax

Bracket ($)

Marginal Tax

Rate (%)

1-10,000

10

10,001–

40,000

15

40,001–

90,000

25

90,001–

150,000

27.5

For a person earning $75,000, the marginal tax rate for the amount from 10,001 to $15,000 is:

127.

Single Tax

Bracket ($)

Marginal Tax

Rate (%)

1-10,000

10

10,001–

40,000

15

40,001–

90,000

25

90,001–

150,000

27.5

For a person earning $75,000, the average tax rate is:

128.

Single Tax

Bracket ($)

Marginal Tax

Rate (%)

1-10,000

10

10,001–

40,000

15

40,001–

90,000

25

90,001–

150,000

27.5

For a person earning $75,000, the marginal tax amount from 10,001 to $15,000 is:

129.

Single Tax

Bracket ($)

Marginal Tax

Rate (%)

1-10,000

10

10,001–

40,000

15

40,001–

90,000

25

90,001–

150,000

27.5

For a person earning $75000, the marginal tax amount from 40,001 to $75000 is:

130. The American individual income tax is:

131. A tax on individuals’ earnings is called the:

132. A tax on the income earned by buying investments and selling them at a higher price is called the:

133. A tax on the wages paid to an employee is called the:

134. A tax on the value of a good or service being purchased is called the:

135. The taxes used to pay for Social Security and Medicare are:

136. The payroll tax and the income tax differ in that:

137. The Social Security system pays:

138. FICA, the tax that supports Medicare and Social Security, is generally:

139. While corporations bear the statutory incidence of corporate income tax, the economic incidence is

likely borne by:

140. Corporate taxes in the US are:

141. A helpful way to put government revenues into context is to think about it:

142. Higher income countries tend to collect _____________ as a percentage of their GDP than do low-

income countries.

143. One interesting feature of federal government spending in the United States is that:

144. Discretionary spending involves public expenditures that:

145. A public expenditure that has to be approved each year is called:

146. Entitlement spending:

147. An example of entitlement spending is:

148. When a government spends more than it earns in revenue, we say that it has a:

149. When a government earns more than it spends in revenue, we say that it has a:

150. Deficits and surpluses are commonly calculated as:

151. If the federal government brings in $1.1 trillion in tax revenues and spends $0.7 trillion, the

government has a budget:

152. The federal debt is ____________ and the federal deficit is ______________.

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153. If the federal government brings in $3 trillion in tax revenues and spends $4 trillion, the government

has a budget:

154. It is difficult to balance the budget every year because:

155. Instead of trying to balance the budget every year, it is easier to:

156. During a time of an economic downturn, it is likely that projected tax revenues will be __________

than anticipated, and expenditures will be _______ than anticipated.

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Chapter 20 Test Bank Summary