Question 1

A lump sum tax is one for which the individual's liability does not depend on behavior.

Accepted Answer

A) True 
 B)False

Question 2

A demand curve that is perfectly inelastic is

Accepted Answer

A) horizontal. 
B) vertical. 
C) at a 45 degree angle. 
D) parallel to the X-axis. 
A) horizontal. 
B) vertical. 
C) at a 45 degree angle. 
D) parallel to the X-axis.

Question 3

Why is it the case that taxes in one market can have impacts on supply and demand in others and should policy makers take this into account when setting taxes?

Accepted Answer

When goods are complements or substitute

Question 4

The tax-induced difference between the price paid by consumers and the price received by producers is

Accepted Answer

A) the tax difference. 
B) the tax wedge. 
C) the statutory incidence. 
D) the supply side effect. 
A) the tax difference. 
B) the tax wedge. 
C) the statutory incidence. 
D) the supply side effect.

Question 5

An industry where the capital-labor ratio is relatively high is characterized as

Accepted Answer

A) capital intensive. 
B) labor intensive. 
C) income intensive. 
D) market intensive. 
A) capital intensive. 
B) labor intensive. 
C) income intensive. 
D) market intensive.

Question 6

Figure 14.2
-Refer to Figure 14.2 .Suppose the original before-tax demand curve for CD players is P = 100 - 2Qd.Suppose further that supply is P = 5 + 3Qs.Now suppose a $5 unit tax is imposed on consumers.
(A)What is the before?tax equilibrium price and quantity?
(B)What is the after?tax equilibrium price and quantity?
(C)How much tax revenue is raised?

Accepted Answer

(A)Setting before?tax demand equal to su

Question 7

An ad valorem tax is

Accepted Answer

A) given as a proportion of the price. 
B) Latin for "buyer beware." 
C) identical to a unit tax. 
D) computed using the "inverse taxation rule." 
A) given as a proportion of the price. 
B) Latin for "buyer beware." 
C) identical to a unit tax. 
D) computed using the "inverse taxation rule."

Question 8

Partial equilibrium is

Accepted Answer

A) exactly like general equilibrium. 
B) studying only the supply side of the market. 
C) studying individual markets. 
D) examining the demand side of the market. 
A) exactly like general equilibrium. 
B) studying only the supply side of the market. 
C) studying individual markets. 
D) examining the demand side of the market.

Question 9

In the press,there has been a considerable amount of attention given to the notion of corporations being taxed.Explain how it is that a tax on a business could be borne entirely by consumers.

Accepted Answer

Elasticity plays a key role in

Question 10

Marginal tax rates supply reliable measures of tax progressiveness.

Accepted Answer

A) True 
 B)False

Question 11

In a general equilibrium model,a tax on a single factor in its use only in a particular sector can affect returns to all factors in all sectors.

Accepted Answer

A) True 
 B)False

Question 12

In 2005,the top 1% of all income earners paid _________ percent of federal taxes.

Accepted Answer

A) 1.0 
B) 4.1 
C) 20.6 
D) 27.6 
A) 1.0 
B) 4.1 
C) 20.6 
D) 27.6

Question 13

Tax wedge is the difference between tax induced price paid by customer and the tax amount

Accepted Answer

A) True 
 B)False

Question 14

From Question 18 above,calculate the economic incidence incurred by producers and the economic incidence incurred by consumers.

Accepted Answer

The after-tax consumer price i

A lump sum tax is one for which the individual's liability does not depend on behavior.

A demand curve that is perfectly inelastic is

Why is it the case that taxes in one market can have impacts on supply and demand in others and should policy makers take this into account when setting taxes?

The tax-induced difference between the price paid by consumers and the price received by producers is

An industry where the capital-labor ratio is relatively high is characterized as

An ad valorem tax is

Partial equilibrium is

In the press,there has been a considerable amount of attention given to the notion of corporations being taxed.Explain how it is that a tax on a business could be borne entirely by consumers.

Marginal tax rates supply reliable measures of tax progressiveness.

In a general equilibrium model,a tax on a single factor in its use only in a particular sector can affect returns to all factors in all sectors.

In 2005,the top 1% of all income earners paid _________ percent of federal taxes.

Tax wedge is the difference between tax induced price paid by customer and the tax amount

From Question 18 above,calculate the economic incidence incurred by producers and the economic incidence incurred by consumers.

Introduction

Tools of Positive Analysis

Tools of Normative Analysis

Public Goods

Externalities

Political Economy

Education

Cost-Benefit Analysis

The Health Care Market

Government and the Market for Health Care

Social Security

Income Redistribution: Conceptual Issues

Expenditure Programs for the Poor

Taxation and Efficiency

Efficient and Equitable Taxation

The Personal Income Tax

Personal Taxation and Behavior

The Corporation Tax

Deficit Finance

Fundamental Tax Reform: Taxes on Consumption and Wealth

Public Finance in a Federal System

Filters

Exam 14: Taxation and Income Distribution

A lump sum tax is one for which the individual's liability does not depend on behavior.

A demand curve that is perfectly inelastic is

Why is it the case that taxes in one market can have impacts on supply and demand in others and should policy makers take this into account when setting taxes?

The tax-induced difference between the price paid by consumers and the price received by producers is

An industry where the capital-labor ratio is relatively high is characterized as

An ad valorem tax is

Partial equilibrium is

In the press,there has been a considerable amount of attention given to the notion of corporations being taxed.Explain how it is that a tax on a business could be borne entirely by consumers.

Marginal tax rates supply reliable measures of tax progressiveness.

In a general equilibrium model,a tax on a single factor in its use only in a particular sector can affect returns to all factors in all sectors.

In 2005,the top 1% of all income earners paid _________ percent of federal taxes.

Tax wedge is the difference between tax induced price paid by customer and the tax amount

From Question 18 above,calculate the economic incidence incurred by producers and the economic incidence incurred by consumers.

Introduction

Tools of Positive Analysis

Tools of Normative Analysis

Public Goods

Externalities

Political Economy

Education

Cost-Benefit Analysis

The Health Care Market

Government and the Market for Health Care

Social Security

Income Redistribution: Conceptual Issues

Expenditure Programs for the Poor

Taxation and Efficiency

Efficient and Equitable Taxation

The Personal Income Tax

Personal Taxation and Behavior

The Corporation Tax

Deficit Finance

Fundamental Tax Reform: Taxes on Consumption and Wealth

Public Finance in a Federal System

Filters