Question 1

Generally,most economists feel that a sales tax is:

Accepted Answer

A)  regressive. 
B)  proportional. 
C)  progressive. 
D)  fair. 
A)  regressive. 
B)  proportional. 
C)  progressive. 
D)  fair.

Question 2

Voters may choose to remain uninformed about an issue because of:

Accepted Answer

A)  the special-interest effect. 
B)  rational ignorance. 
C)  bureaucratic inefficiency. 
D)  the shortsightedness effect. 
A)  the special-interest effect. 
B)  rational ignorance. 
C)  bureaucratic inefficiency. 
D)  the shortsightedness effect.

Question 3

A person who is in a 31 percent marginal tax bracket and has a total taxable income of $100,000 will owe $31,000 in taxes.

Accepted Answer

A) True 
 B)False

Question 4

A tax is structured so that the tax as a percentage of income declines as the level of income increases is called a(n):

Accepted Answer

A)  flat tax. 
B)  regressive tax. 
C)  progressive tax. 
D)  excise tax. 
A)  flat tax. 
B)  regressive tax. 
C)  progressive tax. 
D)  excise tax.

Question 5

A special interest group cannot impose its will on the majority because the perceived costs and benefits from government programs are the same for both groups.

Accepted Answer

A) True 
 B)False

Question 6

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:

Accepted Answer

A)  regressive. 
B)  progressive. 
C)  proportional. 
D)  flat. 
A)  regressive. 
B)  progressive. 
C)  proportional. 
D)  flat.

Question 7

When the tax structure of a nation is progressive,as incomes increase,the tax rate:

Accepted Answer

A)  declines. 
B)  remains the same. 
C)  increases. 
D)  is proportional. 
A)  declines. 
B)  remains the same. 
C)  increases. 
D)  is proportional.

Question 8

A progressive tax means the percentage of income paid as taxes:

Accepted Answer

A)  increases as income increases. 
B)  decreases as income increases. 
C)  remains the same as income increases. 
D)  none of the above. 
A)  increases as income increases. 
B)  decreases as income increases. 
C)  remains the same as income increases. 
D)  none of the above.

Question 9

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

Accepted Answer

A)  proportional tax. 
B)  progressive tax. 
C)  regressive tax. 
D)  poll tax. 
E)  constant tax. 
A)  proportional tax. 
B)  progressive tax. 
C)  regressive tax. 
D)  poll tax. 
E)  constant tax.

Question 10

A tax where the percentage of income paid in taxes is the same regardless of the size of the income is a:

Accepted Answer

A)  proportional tax. 
B)  regressive tax. 
C)  progressive tax. 
D)  mix of a and 
A)  proportional tax. 
B)  regressive tax. 
C)  progressive tax. 
D)  mix of a and

Question 11

A tax is regressive if it collects a:

Accepted Answer

A)  larger amount as income rises. 
B)  constant amount as income rises. 
C)  smaller fraction of income as income falls. 
D)  smaller fraction of income as income rises. 
A)  larger amount as income rises. 
B)  constant amount as income rises. 
C)  smaller fraction of income as income falls. 
D)  smaller fraction of income as income rises.

Question 12

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):

Accepted Answer

A)  proportional tax. 
B)  equitable tax. 
C)  head tax. 
D)  unit tax. 
E)  progressive tax. 
A)  proportional tax. 
B)  equitable tax. 
C)  head tax. 
D)  unit tax. 
E)  progressive tax.

Question 13

Sales and excise taxes are:

Accepted Answer

A)  progressive. 
B)  proportional. 
C)  regressive. 
D)  fixed-revenue. 
A)  progressive. 
B)  proportional. 
C)  regressive. 
D)  fixed-revenue.

Question 14

State and local property taxes are regressive.

Accepted Answer

A) True 
 B)False

Question 15

The social security tax is a:

Accepted Answer

A)  progressive tax at all income levels. 
B)  regressive tax above a certain income level. 
C)  proportional tax at all income levels. 
D)  none of the above. 
A)  progressive tax at all income levels. 
B)  regressive tax above a certain income level. 
C)  proportional tax at all income levels. 
D)  none of the above.

Question 16

Measured as a share of the economy,government expenditures:

Accepted Answer

A)  have been between 10 and 15 percent of the U.S. economy since 1930. 
B)  have been between 20 and 25 percent of the U.S. economy since 1930. 
C)  rose from less than 10 percent in 1929 to over 35 percent currently. 
D)  declined from more than 50 percent in 1929 to approximately 25 percent currently. 
A)  have been between 10 and 15 percent of the U.S. economy since 1930. 
B)  have been between 20 and 25 percent of the U.S. economy since 1930. 
C)  rose from less than 10 percent in 1929 to over 35 percent currently. 
D)  declined from more than 50 percent in 1929 to approximately 25 percent currently.

Question 17

Which of the following countries had the lowest level of government expenditures as a share of GDP?

Accepted Answer

A)  Sweden. 
B)  Japan. 
C)  United States. 
D)  Italy. 
A)  Sweden. 
B)  Japan. 
C)  United States. 
D)  Italy.

Question 18

The largest revenue source in the U.S.federal tax system is the corporate income tax.

Accepted Answer

A) True 
 B)False

Question 19

The primary source of revenue at the federal level is:

Accepted Answer

A)  the corporate income tax. 
B)  the personal income tax. 
C)  property taxes. 
D)  sales taxes. 
E)  customs duties. 
A)  the corporate income tax. 
B)  the personal income tax. 
C)  property taxes. 
D)  sales taxes. 
E)  customs duties.

Question 20

Exhibit 16-2 Income and taxes for two persons
  
-In Exhibit 16-2,we can tell that the tax shown here is:

Accepted Answer

A)  a poll tax. 
B)  proportional. 
C)  progressive. 
D)  equitable. 
E)  regressive. 
A)  a poll tax. 
B)  proportional. 
C)  progressive. 
D)  equitable. 
E)  regressive.

Exam 16: The Public Sector

Generally,most economists feel that a sales tax is:

Voters may choose to remain uninformed about an issue because of:

A person who is in a 31 percent marginal tax bracket and has a total taxable income of $100,000 will owe $31,000 in taxes.

A tax is structured so that the tax as a percentage of income declines as the level of income increases is called a(n):

A special interest group cannot impose its will on the majority because the perceived costs and benefits from government programs are the same for both groups.

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:

When the tax structure of a nation is progressive,as incomes increase,the tax rate:

A progressive tax means the percentage of income paid as taxes:

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

A tax where the percentage of income paid in taxes is the same regardless of the size of the income is a:

A tax is regressive if it collects a:

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):

Sales and excise taxes are:

State and local property taxes are regressive.

The social security tax is a:

Measured as a share of the economy,government expenditures:

Which of the following countries had the lowest level of government expenditures as a share of GDP?

The largest revenue source in the U.S.federal tax system is the corporate income tax.

The primary source of revenue at the federal level is:

Exhibit 16-2 Income and taxes for two persons -In Exhibit 16-2,we can tell that the tax shown here is:

Introducing the Economic Way of Thinking

A: Appendix: Applying Graphs to Economics

Production Possibilities,Opportunity Cost,and Economic Growth

Part 1: Market Demand and Supply

Part 2: Market Demand and Supply

Markets in Action

Price Elasticity of Demand

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets and Income Distribution

Gross Domestic Product

Business Cycles and Unemployment

Inflation

Aggregate Demand and Supply

A: Appendix: The Self-Correcting Aggregate Demand and Supply Model

Fiscal Policy

Federal Deficits,Surpluses,and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

A: Appendix: Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Filters