Exam 33: Taxes: Equity Versus Efficiency

The imposition of a payroll tax

The tax elasticity of supply measures the

Figure 33.2 illustrates Lorenz curves for four different economies.For which economy would the lowest 20 percent of families receive the smallest share of total income?

Which of the following was a basic feature of the Tax Relief Act of 2001?

Which of the following is a payroll tax?

In Alpha the lowest 20 percent of families receive approximately what percentage of income? (See Figure 33.1)

State and local governments generate most of their revenues through

In what way is the Social Security payroll tax regressive?

Refer to the labor market in Figure 33.5.Suppose the government imposes a payroll tax on employers.How much of the tax burden is passed on to workers?

Figure 33.2 illustrates Lorenz curves for four different economies.Which economy should have a Gini coefficient of zero?

The proportion of total income received by a particular group is called the group's

Exemptions and deductions included in the tax laws

Additional loopholes in the personal income tax law tend to

As the ________ becomes larger,the distance between the line of absolute equality and the ________ becomes greater.

Medicare is an example of

In Figure 33.4,what is the cost of labor to the firm after the imposition of the payroll tax,and how many workers will be hired?

Vertical equity can be determined by comparing the

High-income families pay a significantly greater percentage of their income in taxes compared to low-income families.

If an individual is taxed at a 17 percent rate for each extra dollar earned,the reference is to the

Suppose a taxpayer has an income of $120,000 and a taxable income of $80,000,and pays $20,000 in taxes.If the taxpayer says she is taxed at a 25 percent tax rate,she is referring to the