Exam 20: Public Finance: Expenditures and Taxes

With respect to state finance, for most states

The maximum federal marginal tax rate on taxable personal income is, as of 2016,

The benefits-received principle of taxation is

Which of the following is the largest expenditure item of local governments?

The largest portion of federal employees work in the national defense sector.

Which of the following taxes is least likely to be shifted?

Other things being equal, the burden of a sales tax on a product will be borne entirely by the producer if

In economics, the "public sector" refers to the

The U.S.federal expenditures for "pensions and income security" are dominated by

A tax that takes a larger proportion of income from low-income groups than from high-income groups is a

With a tax of $2,000 on $30,000 of income and $2,000 on $70,000 of income, we can describe the structure of this tax as

Just like businesses, the public sector uses resources in order to produce goods and services.

The federal payroll (Social Security) tax

Currently (2016) the marginal tax rates of the federal personal income tax

The burden of a specific sales tax falls entirely on the consumer when the

In the U.S., the progressive income-tax system substantially redistributes income.

A person whose income has increased from $10,000 to $20,000 finds that her federal marginal tax rate has increased from 18 percent to 22 percent.This is an example of a

Suppose that government imposes a specific excise tax on product X of $2 per unit and that the price elasticity of supply of X is unitary (coefficient = 1).If the incidence of the tax is such that the producers of X pay $1.90 of the tax and the consumers pay $.10, we can conclude that the

Approximately what percentage of local government expenditures goes to finance education?

If everyone pays a fixed dollar amount of tax, then the tax is a