Exam 18: Public Choice, Taxes, and the Distribution of Income

The federal government does not tax employees on on the amount that employers spend providing them with health insurance. When comparing employees who receive employee-provided health insurance and consumers who must pay for their own health insurance, the non-taxed amount spent on employer-provided health insurance is an example of

According to the ability-to-pay principle of taxation

Rapid economic growth tends to increase the degree of income mobility.

For the top 1 percent of income distribution, the share of federal individual income taxes paid by households in this group in 2015 was ________ percent.

If your income is $92,000 and you pay taxes of $19,475, what is your average tax rate? Show your work.

A personal exemption refers to

A common belief among political analysts is that someone running for his or her party's nomination for president of the United States must choose a different strategy once the nomination is secured. To be nominated, the candidate must appeal to voters from one party-Democrat or Republican-but in a general election a party's nominee must appeal to voters from both parties as well as independent voters. Which of the following offers the best explanation for this change in strategy?

One important difference between the political process and the market process is that

Unlike the market process, in the political market it is possible for some individuals to receive very large benefits from the political process without any significant impact on their tax bills.

Rational ignorance

Logrolling refers to attempts by individuals to use government action to make themselves better off at the expense of others.

What is the difference between the poverty line and the poverty rate?

Which of the following is used to argue that the self-interest of public policymakers will often lead to actions that are inconsistent with the preferences of the voters they represent?

If you pay a constant percentage of your taxable income in taxes, the tax is

If you pay $2,000 in taxes on an income of $20,000, and a tax of $2,700 on an income of $30,000, then over this range of income the tax is

Financial contributions to the campaigns of members of Congress, state legislators, and other elected officials by firms that seek special interest legislation that make the firms better off are

According to public choice theory, policymakers

The poverty rate is defined as the percentage of the

As the value of the Gini coefficient approaches zero

If the marginal tax rate is greater than the average tax rate, the tax structure is described as regressive.