Exam 20: Public Finance: Expenditures and Taxes

Education is the largest expenditure item for state governments as well as local governments in the U.S.

A nation’s "tax burden" is measured by the

When the government is doing "deficit spending," it will be increasing its total debt.

The marginal tax rate is the

The largest source of local government's revenue is the sales tax.

With respect to local finance,

The Social Security tax is regressive because

The Social Security tax is regressive because it applies only on income below a "cap" income level.

Tax shifting refers to the fact that

The tax that is most difficult to shift to others would be

Public finance is the subdiscipline of economics that studies the various ways in which

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 consumers of X pay $1.85 of the tax and the producers pay $0.15, we can conclude that the

In 2015, personal income taxes contributed what percentage of total federal tax revenues in the U.S.?

The federal gasoline tax is assessed on a per-gallon basis, and the proceeds are used for highway maintenance and improvements.This tax is consistent with the

The largest source of tax revenue for state governments is the property tax.

Although state and local taxes are highly progressive, federal taxation is predominantly regressive.

Overall, the U.S.tax system (combined federal, state, and local) is

In designing taxes, the government economists might focus on the following goals, except

The actual incidence of payroll taxes, in the consensus view, is

Government assumes some responsibility for providing a minimum standard of living for all citizens to compensate for the increase in income inequality caused by government tax revenues and expenditures.