Exam 7: Taxes

Use the following to answer question: -(Scenario: The Market for Good X)Use Scenario: The Market for Good X.The per-unit tax incidence on producers is equal to (round all calculations to two decimal places):

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.

A tax that takes a _____ is _____.

When the government imposes an excise tax in a market with a downward-sloping demand curve and an upward-sloping supply curve:

Use the following to answer question: -(Figure and Table: The Market for Taxi Rides)Use Figure and Table: The Market for Taxi Rides.If the government imposes an excise tax of $1 per ride (causing the supply curve to shift upward by that amount),then people who ride taxis will pay _____ of each $1 tax.

The benefits principle says that taxes should be used to benefit the maximum number of people.

A _____ tax takes a fixed percentage of income,regardless of the level of income.

Suppose the government imposes a $10 excise tax on the sale of sweaters by charging suppliers $10 for each sweater sold.If the demand curve is downward-sloping and the supply curve is upward-sloping:

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 25%,a family earning $60,000 of income will pay _____ in personal taxes.

A regressive tax structure is one in which taxes:

The U.S.income tax is _____,while the FICA tax is _____.

Prior to any taxes,the equilibrium price of gasoline is $3 per gallon.Then a $1-per-gallon tax is levied.As a result,the price of gasoline rises to $3.75 per gallon.The incidence of the $1 tax is _____ paid by consumers and _____ paid by producers.

Use the following to answer question: -(Figure: The Market for Blue Jeans)Use Figure: The Market for Blue Jeans.The government recently levied a $10 tax on the producers of blue jeans.What is the deadweight loss?

If the marginal tax rate equals the average tax rate,the tax system is:

The burden of a tax on a good is said to fall completely on the consumers if the:

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 _____%.

If demand is inelastic,then deadweight loss will:

The structure of the U.S.federal income tax system reflects the _____ principle.

The burden of a tax on a good falls at least partially on consumers if the:

If the United States removed all excise taxes on cigarettes,which effect would NOT occur?