Exam 20: Public Finance: Expenditures and Taxes

At the state and local levels of the U.S. government, a majority of government employees work in which of the following areas?

Which generalization is incorrect?

The major expenditure of local governments is for education.

The marginal tax rate is the

The three most important sources of federal tax revenue in order of descending importance are

A progressive tax is such that

(Consider This) Payout rates for state lotteries

Joe complains that 32 percent of his income last year went to taxes. He is referring to his

According to data compiled by the Bureau of Economic Analysis, from 1960 to 2015, government transfer payments as a percentage of U.S. output have

If a tax is progressive, then

If you pay a $2,000 tax on $10,000 of taxable income and a $4,000 tax on a taxable income of $16,000, the tax is progressive.

In economics, the "public sector" refers to the

Which statement best describes the overall tax and transfer systems of the United States?

Assume that in year 1 your average tax rate is 20 percent on a taxable income of $20,000. If the marginal tax rate on the next $10,000 of taxable income is 30 percent, what will be the average tax rate if your taxable income rises to $30,000?

The main difference between sales and excise taxes is that

Payroll taxes account for more than one-third of federal tax revenues.

Which of the following is not an important source of revenue for the federal government?

The tax that is most difficult to shift to others would be

A tax is progressive if the average tax rate rises as income increases.

The levying of licensing fees for automobiles is an example of taxation based on the ability-to-pay principle.