Exam 20: Public Finance: Expenditures and Taxes

The U.S. tax and transfer study done by economists Chamberlain and Prante of the Tax Foundation notes that in 2012 households in the top income quintile received about

Only a few states use state-run lotteries to increase their revenues and pay for expenditures.

The sales tax is a regressive tax because the

Which of the following is not an argument presented by defenders of state-run lotteries?

Approximately what percentage of state spending goes to finance education?

With a tax of $2,000 on $30,000 of income and $2,000 on $70,000 of income, we can describe the structure of this tax as

If each taxpayer paid the same lump-sum amount regardless of income level, the tax system would be

The largest category of federal spending is for

The opportunity cost of borrowing funds to finance government deficits is

The tax revenues of local governments are typically

Revenues flowing to the government from government-run or government-sponsored businesses, such as public utilities and state lotteries, are known as

In general for an excise tax on a product, given supply, the more elastic is the demand for the product, the larger will be the portion of the tax shouldered by the buyers.

If the tax on gasoline is increased, gas stations are most likely to pass most of this increase to the consumer if the demand is

Assume you pay a tax of $4,000 on a taxable income of $24,000. If your taxable income were $30,000, your tax payment would be $5,000. This suggests that the tax is

A federal excise tax on tires for cars and trucks would be an example of the

Economists agree that corporations always shift the corporate income tax to consumers by raising product prices.

The average tax rate is

Most of the state and local government employees are in what area?

The Social Security tax is regressive because

(Advanced analysis) The equations for the demand and supply curves for a particular product are P = 10 − 0.4Q and P = 2 + 0.4Q, where P is price and Q is quantity expressed in units of 100. After an excise tax is imposed on the product, the supply equation is P = 3 + 0.4Q. The excise tax on each unit of the product