Question 1

In Figure 33.4,what is the burden of the tax on workers?

Accepted Answer

A) The wage reduction from W3 to W1. 
B) The wage reduction from W3 to W2. 
C) The wage reduction from W5 to W2. 
D) The wage reduction from W5 to W3. 
A) The wage reduction from W3 to W1. 
B) The wage reduction from W3 to W2. 
C) The wage reduction from W5 to W2. 
D) The wage reduction from W5 to W3.

Question 2

The federal income tax is designed to

Accepted Answer

A) Shift the Lorenz curve inward. 
B) Shift the Lorenz curve outward. 
C) Raise the Gini coefficient. 
D) Decrease vertical equity. 
A) Shift the Lorenz curve inward. 
B) Shift the Lorenz curve outward. 
C) Raise the Gini coefficient. 
D) Decrease vertical equity.

Question 3

Suppose a taxpayer has an income of $90,000 and a taxable income of $75,000,and pays $7,500 in taxes.If the taxpayer says he is taxed at a 10 percent tax rate,he is referring to the

Accepted Answer

A) Vertical tax rate. 
B) Marginal tax rate. 
C) Effective tax rate. 
D) Nominal tax rate. 
A) Vertical tax rate. 
B) Marginal tax rate. 
C) Effective tax rate. 
D) Nominal tax rate.

Question 4

Wealth refers to

Accepted Answer

A) The way personal income is divided among households. 
B) The purchasing power this year. 
C) A flow of money over time. 
D) The market value of assets people own. 
A) The way personal income is divided among households. 
B) The purchasing power this year. 
C) A flow of money over time. 
D) The market value of assets people own.

Question 5

In general,lower marginal tax rates provide incentives to

Accepted Answer

A) Work less. 
B) Produce more output. 
C) Invest less. 
D) Find more tax loopholes. 
A) Work less. 
B) Produce more output. 
C) Invest less. 
D) Find more tax loopholes.

Question 6

In Omega the lowest 40 percent of families receive approximately what percentage of income? (See Figure 33.1)

Accepted Answer

A) 20 percent. 
B) 40 percent. 
C) 10 percent. 
D) 17 percent. 
A) 20 percent. 
B) 40 percent. 
C) 10 percent. 
D) 17 percent.

Exam 33: Taxes: Equity Versus Efficiency

In Figure 33.4,what is the burden of the tax on workers?

The federal income tax is designed to

Suppose a taxpayer has an income of $90,000 and a taxable income of $75,000,and pays $7,500 in taxes.If the taxpayer says he is taxed at a 10 percent tax rate,he is referring to the

Wealth refers to

In general,lower marginal tax rates provide incentives to

In Omega the lowest 40 percent of families receive approximately what percentage of income? (See Figure 33.1)

Economics: the Core Issues

The Useconomy: a Global View

Supply and Demand

The Role of Government

National Income Accounting

Unemployment

Inflation

The Business Cycle

Aggregate Demand

Self-Adjustment or Instability

Fiscal Policy

Deficits and Debt

Money and Banks

The Federal Reserve System

Monetary Policy

Supply-Side Policy: Short-Run Options

Growth and Productivity: Long-Run Possibilities

Theory Versus Reality

Consumer Choice

Elasticity

The Costs of Production

The Competitive Firm

Competitive Markets

Monopoly

Oligopoly

Monopolistic Competition

Natural Monopolies: Deregulation

Environmental Protection

The Farm Problem

The Labor Market

Labor Unions

Financial Markets

Transfer Payments: Welfare and Social Security

International Trade

International Finance

Global Poverty

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