Question 1

The two largest sources of tax revenue for the U.S. federal government are

Accepted Answer

A)  excise taxes and customs duties. 
B)  payroll taxes and excise taxes. 
C)  personal income taxes and payroll taxes. 
D)  personal income taxes and corporate income taxes. 
A)  excise taxes and customs duties. 
B)  payroll taxes and excise taxes. 
C)  personal income taxes and payroll taxes. 
D)  personal income taxes and corporate income taxes.

Question 2

In 2013, the top 5 percent of income-tax filers paid what portion of the total U.S. federal income tax?

Accepted Answer

A)  close to 60 percent 
B)  about 30 percent 
C)  less than 20 percent 
D)  more than 80 percent 
A)  close to 60 percent 
B)  about 30 percent 
C)  less than 20 percent 
D)  more than 80 percent

Question 3

With a tax of $4,000 on $20,000 of income and $6,000 on $30,000 of income, the average tax rate is

Accepted Answer

A)  constant at 10 percent. 
B)  lower than the marginal tax rate. 
C)  equal to the marginal tax rate. 
D)  higher than the marginal tax rate, which is equal to zero. 
A)  constant at 10 percent. 
B)  lower than the marginal tax rate. 
C)  equal to the marginal tax rate. 
D)  higher than the marginal tax rate, which is equal to zero.

Question 4

The basic source of state government's revenue is the property tax.

Accepted Answer

A) True 
 B)False

Question 5

In 2015, corporate income taxes contributed about what percentage of U.S. federal tax revenues?

Accepted Answer

A)  10 percent 
B)  25 percent 
C)  50 percent 
D)  70 percent 
A)  10 percent 
B)  25 percent 
C)  50 percent 
D)  70 percent

Question 6

The benefits-received principle of taxation is most evident in

Accepted Answer

A)  inheritance taxes. 
B)  excise taxes on gasoline. 
C)  the personal income tax. 
D)  the corporate income tax. 
A)  inheritance taxes. 
B)  excise taxes on gasoline. 
C)  the personal income tax. 
D)  the corporate income tax.

Question 7

Assume the Environmental Protection Agency imposes an excise tax on polluting firms. In which of the following situations would we expect the additional costs to be borne most heavily by consumers?

Accepted Answer

A)  Demand is highly elastic and supply is highly inelastic. 
B)  Demand and supply are both highly elastic. 
C)  Demand and supply are both highly inelastic. 
D)  Demand is highly inelastic and supply is highly elastic. 
A)  Demand is highly elastic and supply is highly inelastic. 
B)  Demand and supply are both highly elastic. 
C)  Demand and supply are both highly inelastic. 
D)  Demand is highly inelastic and supply is highly elastic.

Question 8

Corporate income taxes contribute more to federal tax revenues than do personal income taxes.

Accepted Answer

A) True 
 B)False

Question 9

If the demand for a product is perfectly elastic and supply is upsloping, a $1 excise tax per unit on suppliers will

Accepted Answer

A)  not raise price at all. 
B)  lower price by $1. 
C)  raise price by more than $1. 
D)  raise price by $1. 
A)  not raise price at all. 
B)  lower price by $1. 
C)  raise price by more than $1. 
D)  raise price by $1.

Question 10

Other things being equal, the burden of a sales tax on a product will be borne entirely by the producer if

Accepted Answer

A)  demand is perfectly elastic. 
B)  supply is perfectly elastic. 
C)  supply and demand have the same price elasticity. 
D)  demand is perfectly inelastic. 
A)  demand is perfectly elastic. 
B)  supply is perfectly elastic. 
C)  supply and demand have the same price elasticity. 
D)  demand is perfectly inelastic.

Question 11

Government lotteries are

Accepted Answer

A)  used by a large number of states to supplement their tax revenues. 
B)  illegal in the United States but are a common source of revenue in other countries. 
C)  used by local governments but not by state governments. 
D)  a form of progressive taxation. 
A)  used by a large number of states to supplement their tax revenues. 
B)  illegal in the United States but are a common source of revenue in other countries. 
C)  used by local governments but not by state governments. 
D)  a form of progressive taxation.

Question 12

Assume the demand for automobile tires is highly inelastic and that the supply is highly elastic. The burden of a $2 excise tax on each tire will be

Accepted Answer

A)  borne by resource suppliers that provide the inputs for manufacturing tires. 
B)  shared about equally by buyers and sellers of tires. 
C)  borne primarily by buyers of tires. 
D)  borne primarily by sellers of tires. 
A)  borne by resource suppliers that provide the inputs for manufacturing tires. 
B)  shared about equally by buyers and sellers of tires. 
C)  borne primarily by buyers of tires. 
D)  borne primarily by sellers of tires.

The two largest sources of tax revenue for the U.S. federal government are

In 2013, the top 5 percent of income-tax filers paid what portion of the total U.S. federal income tax?

With a tax of $4,000 on $20,000 of income and $6,000 on $30,000 of income, the average tax rate is

The basic source of state government's revenue is the property tax.

In 2015, corporate income taxes contributed about what percentage of U.S. federal tax revenues?

The benefits-received principle of taxation is most evident in

Assume the Environmental Protection Agency imposes an excise tax on polluting firms. In which of the following situations would we expect the additional costs to be borne most heavily by consumers?

Corporate income taxes contribute more to federal tax revenues than do personal income taxes.

If the demand for a product is perfectly elastic and supply is upsloping, a $1 excise tax per unit on suppliers will

Other things being equal, the burden of a sales tax on a product will be borne entirely by the producer if

Government lotteries are

Assume the demand for automobile tires is highly inelastic and that the supply is highly elastic. The burden of a $2 excise tax on each tire will be

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, Rd, and Efficiency

The Demand for Resources

Wage Determination

Rent, Interest, and Profit

Natural Resource and Energy Economics

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Income Inequality, Poverty, and Discrimination

Health Care

Immigration

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

Filters

Exam 20: Public Finance: Expenditures and Taxes

The two largest sources of tax revenue for the U.S. federal government are

In 2013, the top 5 percent of income-tax filers paid what portion of the total U.S. federal income tax?

With a tax of $4,000 on $20,000 of income and $6,000 on $30,000 of income, the average tax rate is

The basic source of state government's revenue is the property tax.

In 2015, corporate income taxes contributed about what percentage of U.S. federal tax revenues?

The benefits-received principle of taxation is most evident in

Assume the Environmental Protection Agency imposes an excise tax on polluting firms. In which of the following situations would we expect the additional costs to be borne most heavily by consumers?

Corporate income taxes contribute more to federal tax revenues than do personal income taxes.

If the demand for a product is perfectly elastic and supply is upsloping, a $1 excise tax per unit on suppliers will

Other things being equal, the burden of a sales tax on a product will be borne entirely by the producer if

Government lotteries are

Assume the demand for automobile tires is highly inelastic and that the supply is highly elastic. The burden of a $2 excise tax on each tire will be

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, Rd, and Efficiency

The Demand for Resources

Wage Determination

Rent, Interest, and Profit

Natural Resource and Energy Economics

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Income Inequality, Poverty, and Discrimination

Health Care

Immigration

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

Filters