Exam 20: Public Finance: Expenditures and Taxes

The graph illustrates the market for a product on which an excise tax has been imposed by government. What is the area that represents the total amount of tax revenue going to the government?

The efficiency loss of a tax is

In general for an excise tax on a product, given supply, the more elastic is the demand for the product, the larger will be the portion of the tax shouldered by the buyers.

Which of the following is not an argument presented by defenders of state-run lotteries?

One distinction between government purchases and transfer payments is that

Government lotteries are

As a proportion of domestic output, taxes in the United States

If government levies a tax or fee on hunting licenses and uses the resulting revenue for wildlife stocking programs, this would be an example of

Payroll taxes account for more than one-third of federal tax revenues.

Approximately what percentage of state spending goes to finance education?

The federal income tax is consistent with the __________ principle of taxation, whereas an excise tax on sporting event tickets is consistent with the ___________ principle of taxation.

Taxable income is

Which of the following is necessarily true if the government were to replace a progressive income tax system with a proportional one?

Explain the difference between marginal and average tax rates.

In the figure, S is the before-tax supply curve and Sₜ is the supply curve after an excise tax is imposed. The total tax collection from this excise tax will be area

If the demand for a product is perfectly elastic and supply is upsloping, a $1 excise tax per unit on suppliers will

The total amount of U.S. tax revenue needed to finance the public sector

In 2018, corporate income taxes contributed about what percentage of U.S. federal tax revenues?

In 2018, personal income taxes contributed what percentage of total federal tax revenues in the U.S.?

Suppose that government imposes a specific excise tax on product X of $6 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 $1.25 of the tax and the consumers pay $4.75, we can conclude that the