Exam 22: The Public Sector

A tax system in which the tax rate on everyone's first $10,000 of income is 10 percent, the tax rate on everyone's second $10,000 of income is 15 percent, and the tax rate on all income over $20,000 is 25 percent is a(n):

If a tax rate falls as a person's income rises, the tax is a:

Comparing total taxes as a percentage of GDP in the United States to Western European countries, such as the France, Norway, and Sweden,

Suppose George's income is $10,000 and he pays a tax of $1,000, but Laura's income is $50,000 and she pays a tax of $4,000. Such a tax is:

After 1970, the share of federal spending allocated to national defense:

Which of the following categories accounted for the largest percentage of total federal government expenditures in recent years?

People who often create benefits for the minority and impose the cost on the majority are called:

If a person is taxed $100 on an income of $1,000, taxed $200 on an income of $2,000, and taxed $300 on an income of $3,000, this person is paying a(n):

Which of the following is a regressive tax?

Sharon pays a tax of $4,000 on her income of $40,000, while Brad pays a tax of $1,000 on his income of $20,000. This tax is:

According to the shortsightedness effect, politicians tend to favor projects with:

Who is recognized as the founder of public choice theory?

Total U.S. government expenditures as a percentage of GDP were largest during which of the following periods of time?

Jan has an income of $30,000 and pays $4,500 in taxes. When Jan's income rises to $40,000, her tax bill rises to $6,500. What is Jan's marginal tax rate?

Which of the following offers theories to explain why the government, like the private sector, may also "fail"?