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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%
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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...
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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
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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.
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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:
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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.
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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
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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%.
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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