Exam 9: The Mixed Economy of the United States

According to the ______ principle, people with greater income and wealth should be taxed at a higher rate.

What tax operates like a retail sales tax, except it is collected from businesses at each stage of production?

Most economists argue that when federal, state, and local taxes are combined, the overall effect is highly regressive.

Economists generally agree that sales, property, and excise taxes are progressive.

An advantage of the value-added tax is that it

For state and local governments, the largest source of tax revenues is from sales and excise taxes, while the largest category of spending is for public education.

The personal distribution of income shows the shares of the nation's income accruing to wages, rent, interest, and profits.

______ is the largest retirement and disability program in the U.S.

The main supporters of a flat-rate tax are tax accountants and lawyers.

The ______ distribution of income shows the shares of a nation's income accruing to land, labor, capital, and entrepreneurship as rent, wages, interest, and profits.

The purpose of transfer payments is to provide a "safety net" of income security for the poor and needy.

Most economists argue that when federal, state, and local taxes are combined, the overall effect is

The determinants of income differences among members of society include all of the following except

A value-added tax amounts to a national sales tax on consumer goods.

The ability-to-pay principle is founded on the notion that people with greater income and wealth should be taxed at a higher rate because their ability to pay is presumably greater.

Proponents of a flat-rate tax contend that it simplifies the tax system and thus reduces the cost of keeping records and filling out tax forms.

For most Americans, income rises to a peak at around age

The federal corporate income tax is essentially a regressive tax.

The Social Security system is the largest retirement and disability program in the United States.

The personal income tax and corporate income tax are examples of the benefits-received principle of taxation.