Exam 16: The Distribution of Income and Social Policy

If the percentage of your taxable income that you pay in taxes is constant, then your tax is

The federal government and some state governments levy taxes on specific goods such as petrol, cigarettes and beer.These are known as

How would the elimination of a sales tax affect the market for a product that had been subject to the tax?

Vertical-equity is most closely associated with which of the following goals or principles?

The Gini coefficient is measured by

What is the tax structure of the federal corporate income tax?

An income tax system is ________ if marginal tax rates increase as income increases.

Figure 16.7 Figure 16.7 shows the Lorenz curve for a hypothetical country. -Refer to Figure 16.7.The second lowest 20 per cent of households

A tax bracket is

Figure 16.1 -Refer to Figure 16.1.Area E + H represents

Figure 16.1 -Refer to Figure 16.1.Area B + C represents

Rapid economic growth tends to increase the degree of income mobility.

What is the poverty rate?

Exempting food purchases from sales tax is consistent with the ability-to-pay principle, although not necessarily consistent with vertical equity.

For a given supply curve, how does the elasticity of demand affect the burden of a tax imposed on a product?

The actual division of a tax between buyers and sellers in a market is the excess burden of the tax.

Horizontal equity means that two people in identical economic situations should pay the same amount of taxes.

If the marginal tax rate is greater than the average tax rate as taxable income increases, the tax structure is

A Gini coefficient of ________ means that an income distribution is perfectly equal and a Gini coefficient of ________ means the income distribution is perfectly unequal.

Figure 16.5 Figure 16.5 shows the Lorenz curve for a hypothetical country. -Refer to Figure 16.5.The middle 40 per cent of households