Economics Chapter 7 Multiple Choice Personal Income And Includin Question

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213. Multiple Choice: Reference: Ref 7-15 (Table: Taxes, S...

Question

Reference: Ref 7-15

(Table: Taxes, Spending, and Income) Look at the table Taxes, Spending, and

Income. Suppose Governor Meridias decides to initiate a state-level sales tax of

5% on all sales. The table shows how household spending varies with household

income. This tax will be:

Answer progressive.

214. Multiple Choice: Reference: Ref 7-15 (Table: Taxes, S…

Question

Reference: Ref 7-15

(Table: Taxes, Spending, and Income) Look at the table Taxes, Spending, and

Income. Suppose Governor Meridias decides to initiate a state-level sales tax of

5% on all sales. The table shows how household spending varies with household

income. A poor household will spend ________ of its annual income on the sales

tax, while a wealthy household will spend ________ of its annual income.

3.5%; 4.5%

Points: 0

215. Multiple Choice: (Table: Taxes, Spending, and Income) ...

Question (Table: Taxes, Spending, and Income) Suppose Governor Meridias decides to

initiate a state-level income tax. The first $50,000 of household income is tax-free,

while any income above $50,000 is taxed at 10%. The average tax rate for a

household earning $75,000 is:

Answer 10%.

216. Multiple Choice: (Table: Taxes, Spending, and Income) ...

Question (Table: Taxes, Spending, and Income) Suppose Governor Meridias initiates a

payroll tax of 10% on all income up to $50,000. Any income above $50,000 is not

taxed. An individual earning $75,000 will have an average tax rate of:

Answer 10%.

217. Multiple Choice: If the government follows an income t...

Question If the government follows an income tax system in which personal income up to

and including $25,000 is not taxed, income of $25,001 to $50,000 is taxed at 10%,

and income over $50,000 is taxed at 25%, a family earning income equal to

$60,000 will pay a marginal tax rate of ________ and an average tax rate of

________.

Answer 12.5%; 25%

218. Multiple Choice: The rate that would apply to an addit…

Points: 0

Question The rate that would apply to an additional $1 of taxable income received by a

taxpayer is the:

lower tax rate.

219. Multiple Choice: Eli has annual earnings of $100,000 a…

Question Eli has annual earnings of $100,000 and Molly has annual earnings of $50,000.

Each consumer goes to the mall and purchases a microwave oven at a price of

$100 and each pays an additional 7%, or $7, in sales tax to the state. This sales

tax is an example of:

a property tax.

220. Multiple Choice: U.S. federal taxes are generally ____…

Question U.S. federal taxes are generally ________, while state and local taxes are

generally ________.

Answer progressive; progressive

221. Multiple Choice: The U.S. income tax is ________, whil...

Question The U.S. income tax is ________, while the payroll tax is ________.

Answer progressive; progressive

Points: 0

222. Multiple Choice: The ________ tax rate on income repre...

Question The ________ tax rate on income represents the additional tax an individual pays if

his or her income goes up by $1. This rate has ________ since 2000.

Answer average; increased

223. Multiple Choice: ________ and ________ are the largest...

Question ________ and ________ are the largest sources of state and local tax revenue.

Answer Profit taxes; sales taxes.

224. Multiple Choice: Sales taxes are considered to be:

Question Sales taxes are considered to be:

Answer proportional.

225. Multiple Choice: Payroll taxes are considered to be:

Question Payroll taxes are considered to be:

Answer proportional.

Points: 0

226. Multiple Choice: The evidence suggests that federal ta...

Question The evidence suggests that federal taxes in the U.S. economy are:

Answer regressive.

227. Multiple Choice: The evidence suggests that taken coll…

Question The evidence suggests that taken collectively, taxes in the U.S. economy are:

Answer extremely regressive.

228. Multiple Choice: Evidence suggests that taken collecti...

Question Evidence suggests that taken collectively, taxes in the U.S. economy are:

Answer extremely regressive.

229. Multiple Choice: Sales taxes are considered to be:

Points: 0

Question Sales taxes are considered to be:

Answer an unfair burden on wealthy people who spend more money on goods subject

to sales tax.

230. Multiple Choice: The structure of the U.S. federal inc...

Question The structure of the U.S. federal income tax system reflects the:

Answer tax–efficiency principle.

231. Multiple Choice: Which of the following is the largest...

Question Which of the following is the largest source of government revenue?

Answer sales taxes

232. Multiple Choice: The two most important sources of fed...

Question The two most important sources of federal tax revenue are the:

Social Security and excise taxes.

Points: 0

233. Multiple Choice: Which of the following taxes is not a…

Question Which of the following taxes is not a major source of tax revenue for the federal

government?

Answer income tax

234. Multiple Choice: Because of tax competition, state and...

Question Because of tax competition, state and local taxes tend to be ________ and federal

taxes tend to be ________.

Answer regressive; regressive

235. Multiple Choice: Which of the following is a tax that …

Question Which of the following is a tax that tends to encourage consumption and

discourage saving and investing?

Answer a consumption tax

236. Multiple Choice: Which of the following taxes is not u...

Question Which of the following taxes is not used in the United States?

Answer property tax

Points: 0

237. Multiple Choice: If personal income up to and includin…

Question If personal income up to and including $25,000 is not taxed, income of $25,001 to

$50,000 is taxed at 10%, and income over $50,000 is taxed at 20%, then a family

earning an income of $75,000 will pay ________ in personal taxes.

Answer $6,000

238. Multiple Choice: If personal income up to and includin…

Question If personal income up to and including $25,000 is not taxed, income of $25,001 to

$50,000 is taxed at 10%, and income over $50,000 is taxed at 20%, then a family

earning an income of $75,000 will pay an average tax rate of:

Answer 5%.

239. Multiple Choice: If personal income up to and includin…

Question If personal income up to and including $25,000 is not taxed, income of $25,001 to

$50,000 is taxed at 10%, and income over $50,000 is taxed at 20%, then a family

earning an income of $75,000 will pay a marginal tax rate of:

Answer 5%.

Points: 0

240. Multiple Choice: If personal income up to and includin…

Question If personal income up to and including $30,000 is not taxed, income of $30,001 to

$60,000 is taxed at 10%, and income over $60,000 is taxed at 25%, then a family

earning an income of $100,000 will pay ________ in personal taxes.

Answer $6,000

241. Multiple Choice: If personal income up to and includin…

Question If personal income up to and including $30,000 is not taxed, income of $30,001 to

$60,000 is taxed at 10%, and income over $60,000 is taxed at 25%, then a family

earning an income of $100,000 will pay an average tax rate of:

Answer 5%.

242. Multiple Choice: If personal income up to and includin…

Question If personal income up to and including $30,000 is not taxed, income of $30,001 to

$60,000 is taxed at 10%, and income over $60,000 is taxed at 25%, then a family

earning an income of $100,000 will pay a marginal tax rate of:

Answer 5%.

243. Multiple Choice: Figure: Tax Incidence Reference: Ref ...

Question

Points: 0

Figure: Tax Incidence

Reference: Ref 7-16

(Figure: Tax Incidence) Look at the figure Tax Incidence. All other things

unchanged, when a good or service is characterized by a relatively elastic supply,

as shown in panel ________, a greater share of the burden of an excise tax is

borne by ________.

A; sellers

244. Multiple Choice: Figure: Tax Incidence Reference: Ref ...

Question

Points: 0

Figure: Tax Incidence

Reference: Ref 7-16

(Figure: Tax Incidence) Look at the figure Tax Incidence. All other things

unchanged, when a good or service is characterized by a relatively inelastic supply,

as shown in panel ________, a greater share of the burden of an excise tax is

borne by ________.

Answer A; buyers

245. Multiple Choice: Figure: Tax Incidence Reference: Ref ...

Question

Points: 0

Figure: Tax Incidence

Reference: Ref 7-16

(Figure: Tax Incidence) Look at the figure Tax Incidence. All other things

unchanged, when a good or service is characterized by a relatively elastic demand,

as shown in panel ________, the greater share of the burden of an excise tax

imposed on it is borne by ________.

Answer D; buyers

246. Multiple Choice: Figure: Tax Incidence Reference: Ref ...

Question

Points: 0

Figure: Tax Incidence

Reference: Ref 7-16

(Figure: Tax Incidence) Look at the figure Tax Incidence. All other things

unchanged, when a good or service is characterized by a relatively inelastic

demand, as shown in panel ________, the greater share of the burden of an excise

tax imposed on it is borne by ________.

Answer C; buyers

247. Multiple Choice: Figure: Tax Incidence Reference: Ref ...

Question

Points: 0

Figure: Tax Incidence

Reference: Ref 7-16

(Figure: Tax Incidence) Look at the figure Tax Incidence. All other things

unchanged, the effect of an excise tax imposed on gasoline in the short run is

most likely illustrated by panel ________, and the greater share of the burden of

the excise tax (shown by the tax wedge in each panel) is borne by ________.

Answer A; buyers

248. Multiple Choice: Figure: Tax Incidence Reference: Ref ...

Question

Points: 0

Figure: Tax Incidence

Reference: Ref 7-16

(Figure: Tax Incidence) Look at the figure Tax Incidence. All other things

unchanged, the effect of an excise tax imposed on gasoline in the long run is most

likely illustrated by panel ________, and the greater share of the burden of the

excise tax (shown by the tax wedge in each panel) is borne by ________.

A; sellers

249. Multiple Choice: Figure: Tax Incidence Reference: Ref ...

Question

Points: 0

Figure: Tax Incidence

Reference: Ref 7-16

(Figure: Tax Incidence) Look at the figure Tax Incidence. Based on the figure, the

deadweight loss of an excise tax is likely to be:

greater in panel B than in panel A.

250. Multiple Choice: Figure: Tax Incidence Reference: Ref ...

Question

Points: 0

Figure: Tax Incidence

Reference: Ref 7-16

(Figure: Tax Incidence) Look at the figure Tax Incidence. Based on the figure, the

deadweight loss of an excise tax is likely to be:

Answer greater in panel D than in panel C.

251. Multiple Choice: Figure: Tax Incidence Reference: Ref ...

Question

Points: 0

Figure: Tax Incidence

Reference: Ref 7-16

(Figure: Tax Incidence) Look at the figure Tax Incidence. Consumers are likely to

bear more of the burden of an excise tax in the situations illustrated by panels:

Answer A and B.

252. Multiple Choice: Figure: Tax Incidence Reference: Ref ...

Question

Points: 0

Figure: Tax Incidence

Reference: Ref 7-16

(Figure: Tax Incidence) Look at the figure Tax Incidence. Producers are likely to

bear more of the burden of an excise tax in the situations illustrated by panels:

Answer A and B.

253. Multiple Choice: Figure: The Gasoline Market Reference…

Question

Points: 0

Figure: The Gasoline Market

Reference: Ref 7-17

(Figure: The Gasoline Market) Look at the figure The Gasoline Market. An excise

tax has been levied on each gallon of gasoline supplied by producers. Based on

the graph, the incidence of the tax on suppliers is:

Answer $1.50.

254. Multiple Choice: Figure: The Gasoline Market Reference…

Question

Points: 0