Exam 9: Public Finance and Public Choice

If a flat tax plan allowed individuals to deduct a standard allowance of $20,000 and the flat tax rate was 20 percent,an individual earning $100,000 would pay an average tax rate of 20%.

A regressive tax:

Exhibit 9-1 A flat tax plan allows individuals to deduct a standard allowance of $25,000 from their wages.Assume that the flat tax rate is 12%. Refer to Exhibit 9-1.Above $25,000 in wages,the average tax rate:

In a proportional tax system each individual would pay the same dollar amount in taxes.

Which of the following is potentially an option to save Social Security?

Exhibit 9-1 A flat tax plan allows individuals to deduct a standard allowance of $25,000 from their wages.Assume that the flat tax rate is 12%. Refer to Exhibit 9-1.If you were earning $50,000 a year,your average tax rate would be:

Exhibit 9-1 A flat tax plan allows individuals to deduct a standard allowance of $25,000 from their wages.Assume that the flat tax rate is 12%. Refer to Exhibit 9-1.How much income tax would you have to pay if you were earning $100,000 a year?

The self-interest assumption is central to the analysis of behavior in both private and public sectors.

If Mike earns $80,000 this year and pays $16,000 in taxes and David earns $50,000 this year and pays $11,000 in taxes,this tax system would appear to be

Government expenditures as a percentage of GDP in the U.S.increased from 1950 to 1975 but decreased sharply during the recession that began in 2008.

Voters will gather information on voting alternatives:

The motivation for an individual citizen to spend the necessary time and effort to resist an interest group is minimal,even if she had a guarantee that this resistance would be effective.

A flat tax:

Which of the following is an example of a progressive tax?

Taxes for the most part are efficient because they retain incentives and align the values that buyers and sellers place on goods and services.

The U.S.federal government relies more heavily on ____ than any other government.

Payroll taxes are actually regressive taxes.

Public choice theory applies ____ principles to politics.

If a flat tax plan allowed individuals to deduct a standard allowance of $15,000 and the flat tax rate was 10 percent,an individual earning $12,000 a year would not pay any income taxes.

Does the benefits received principle work well for all public goods?