Question 1

Table 12-9
The table below shows the marginal tax rates for an unmarried taxpayer for various levels of taxable income.
 
-Refer to Table 12-9.For this tax schedule,what is the average tax rate for an individual with $49,000 in taxable income?

Accepted Answer

A)   25.8%
B)   27.5%.
C)   40.0%
D)   43.7%

Question 2

Suppose Hillary values a large order of French fries at $4.Bill values a large order of French fries at $7.The pre-tax price of a large order of French fries is $2.The government imposes a "fat tax" of $3 on each large order of French fries,and the price rises to $5.The deadweight loss from the tax is

Accepted Answer

A)   $4,and the deadweight loss comes from both Hillary and Bill.
B)   $4,and the deadweight loss comes only from Hillary because she does not buy a large French fries after the tax.
C)   $2,and the deadweight loss comes from both Hillary and Bill.
D)   $2,and the deadweight loss comes only from Hillary because she does not buy a large French fries after the tax.

Question 3

Government spending is projected to rise over the next few decades.Two of the most important reasons are spending on Social Security and Medicare.

Accepted Answer

A) True 
 B)False

Question 4

Most Americans agree that our tax system should

Accepted Answer

A)   (ii) only
B)   (ii) and (iii) only
C)   (i) , (ii) ,and (iii) only
D)   (i) , (ii) , (iii) ,and (iv)

Question 5

Suppose the country of Mankiwland has a new king,King Gregory.For the purpose of efficiency King Gregory's chief economic advisor would encourage him to design his country's tax system to minimize (i) 
Deadweight losses from taxes.
(ii) 
Administrative burdens from taxes.
(iii) 
The tax payments themselves.
(iv) 
Government expenditures to correct for market failures.

Accepted Answer

A)   (i) only
B)   (i) and (ii) only
C)   (iii) and (iv) only
D)   (i) , (ii) , (iii) ,and (iv)

Question 6

Table 12-12
United States Income Tax Rates for a Single Individual,2009 and 2010.
 
-Refer to Table 12-12.What type of tax structure did the United States have in 2009 for single individuals?

Accepted Answer

A)   A proportional tax structure
B)   A regressive tax structure
C)   A progressive tax structure
D)   A lump-sum tax structure

Question 7

Table 12-13
The dollar amounts in the last three columns are the taxes owed under the three different tax systems.
 
-Refer to Table 12-13 Which of the three tax systems is regressive?

Accepted Answer

A)   Tax System A
B)   Tax System B
C)   Tax System C
D)   None of the systems are regressive.

Question 8

The U.S.federal government collects about one-half of the taxes in our economy.

Accepted Answer

A) True 
 B)False

Question 9

List several examples of the administrative burden of the U.S.income tax system.

Accepted Answer

time spent filling out tax for...

Question 10

In 2009,which category represented the largest category of spending for the U.S.federal government?

Accepted Answer

A)   Medicare
B)   Social Security
C)   national defense
D)   net interest

Question 11

A budget surplus occurs when government receipts fall short of government spending.

Accepted Answer

A) True 
 B)False

Question 12

Horizontal equity refers to a tax system in which individuals with similar incomes pay similar taxes.

Accepted Answer

A) True 
 B)False

Question 13

Many health economists believe that it will be very difficult to stem the rise in health care costs because

Accepted Answer

A)   government intervention is unpopular with most citizens,especially the elderly.
B)   improvements in medical technology have not kept pace with technological improvements in other sectors of the economy.
C)   increased competition will increase rather than reduce costs.
D)   medical advances are providing better ways to extend and improve human lives but at high costs.

Question 14

In 2009,federal government receipts were approximately

Accepted Answer

A)   $6,800 per person and federal government spending was approximately $11,400 per person,resulting in a budget surplus
B)   $6,800 per person and federal government spending was approximately $11,400 per person,resulting in a budget deficit.
C)   $11,400 per person and federal government spending was approximately $6,800 per person,resulting in a budget surplus.
D)   $11,400 per person and federal government spending was approximately $6,800 per person,resulting in a budget surplus

Question 15

As a nation gets richer,the government typically takes

Accepted Answer

A)   a constant share of income in taxes.
B)   a smaller share of income in taxes.
C)   a larger share of income in taxes.
D)   There is little evidence of a relationship between income and taxes for most countries.

Question 16

Tax evasion is legal,but tax avoidance is illegal.

Accepted Answer

A) True 
 B)False

Question 17

When the marginal tax rate equals the average tax rate,the tax is

Accepted Answer

A)   proportional.
B)   progressive.
C)   regressive.
D)   egalitarian.

Question 18

Table 12-7
 
-Refer to Table 12-7.What is the marginal tax rate for a person who makes $37,000?

Accepted Answer

A)   9.25%
B)   20%
C)   25%
D)   40%

Question 19

State and local governments receive the largest portion of their tax revenues from

Accepted Answer

A)   sales taxes and income taxes.
B)   income taxes and property taxes.
C)   payroll taxes and income taxes.
D)   property taxes and sales taxes.

Question 20

When a state levies a sales tax,the tax

Accepted Answer

A)   is paid only by the state's residents.
B)   occasionally excludes items that are deemed to be necessities.
C)   is commonly levied on labor services.
D)   applies to wholesale purchases but not retail purchases.

Exam 12: The Design of the Tax System

Table 12-7 -Refer to Table 12-7.What is the marginal tax rate for a person who makes $37,000?

Correct Answer
verified

When the marginal tax rate equals the average tax rate,the tax is

Correct Answer
verified

Correct Answer
verified

State and local governments receive the largest portion of their tax revenues from

Correct Answer
verified

Table 12-12 United States Income Tax Rates for a Single Individual,2009 and 2010. -Refer to Table 12-12.What type of tax structure did the United States have in 2009 for single individuals?

Correct Answer
verified

Table 12-13 The dollar amounts in the last three columns are the taxes owed under the three different tax systems. -Refer to Table 12-13 Which of the three tax systems is regressive?

Correct Answer
verified

As a nation gets richer,the government typically takes

Correct Answer
verified

Tax evasion is legal,but tax avoidance is illegal.

Correct Answer
verified

Government spending is projected to rise over the next few decades.Two of the most important reasons are spending on Social Security and Medicare.

Correct Answer
verified

Most Americans agree that our tax system should

Correct Answer
verified

Many health economists believe that it will be very difficult to stem the rise in health care costs because

Correct Answer
verified

The U.S.federal government collects about one-half of the taxes in our economy.

Correct Answer
verified

In 2009,which category represented the largest category of spending for the U.S.federal government?

Correct Answer
verified

When a state levies a sales tax,the tax

Correct Answer
verified

List several examples of the administrative burden of the U.S.income tax system.

Correct Answer
verified
time spent filling out tax for...
View Answer

Correct Answer
verified

Horizontal equity refers to a tax system in which individuals with similar incomes pay similar taxes.

Correct Answer
verified

Table 12-9 The table below shows the marginal tax rates for an unmarried taxpayer for various levels of taxable income. -Refer to Table 12-9.For this tax schedule,what is the average tax rate for an individual with $49,000 in taxable income?

Correct Answer
verified

In 2009,federal government receipts were approximately

Correct Answer
verified

A budget surplus occurs when government receipts fall short of government spending.

Correct Answer
verified

Exam 12: The Design of the Tax System

Table 12-7 -Refer to Table 12-7.What is the marginal tax rate for a person who makes $37,000?

Correct AnswerverifiedShow Answer

When the marginal tax rate equals the average tax rate,the tax is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

State and local governments receive the largest portion of their tax revenues from

Correct AnswerverifiedShow Answer

Table 12-12 United States Income Tax Rates for a Single Individual,2009 and 2010. -Refer to Table 12-12.What type of tax structure did the United States have in 2009 for single individuals?

Correct AnswerverifiedShow Answer

Table 12-13 The dollar amounts in the last three columns are the taxes owed under the three different tax systems. -Refer to Table 12-13 Which of the three tax systems is regressive?

Correct AnswerverifiedShow Answer

As a nation gets richer,the government typically takes

Correct AnswerverifiedShow Answer

Tax evasion is legal,but tax avoidance is illegal.

Correct AnswerverifiedShow Answer

Government spending is projected to rise over the next few decades.Two of the most important reasons are spending on Social Security and Medicare.

Correct AnswerverifiedShow Answer

Most Americans agree that our tax system should

Correct AnswerverifiedShow Answer

Many health economists believe that it will be very difficult to stem the rise in health care costs because

Correct AnswerverifiedShow Answer

The U.S.federal government collects about one-half of the taxes in our economy.

Correct AnswerverifiedShow Answer

In 2009,which category represented the largest category of spending for the U.S.federal government?

Correct AnswerverifiedShow Answer

When a state levies a sales tax,the tax

Correct AnswerverifiedShow Answer

List several examples of the administrative burden of the U.S.income tax system.

Correct Answerverifiedtime spent filling out tax for...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Horizontal equity refers to a tax system in which individuals with similar incomes pay similar taxes.

Correct AnswerverifiedShow Answer

Table 12-9 The table below shows the marginal tax rates for an unmarried taxpayer for various levels of taxable income. -Refer to Table 12-9.For this tax schedule,what is the average tax rate for an individual with $49,000 in taxable income?

Correct AnswerverifiedShow Answer

In 2009,federal government receipts were approximately

Correct AnswerverifiedShow Answer

A budget surplus occurs when government receipts fall short of government spending.

Correct AnswerverifiedShow Answer

Correct Answer
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time spent filling out tax for...
View Answer

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