Exam 19: Public Finance: Expenditures and Taxes

Transfer payments are about ____ percent of U.S.domestic output (as of 2012).

Which of the following taxes is least likely to be shifted?

Entry fees at national parks and monuments are an example of:

A tax that takes a larger proportion of income from low-income groups than from high-income groups is a:

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.

(Advanced analysis)Answer the question on the basis of the following information: The equations for the demand and supply curves for a particular product are P = 10 - .4Q and P = 2 + .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 + .4Q. Refer to the given information.Government's revenue from this tax is:

Government borrowing:

Answer the question on the basis of the following five schedules,all of which represent income tax schedules for an economy.All figures are in billions of dollars. $\quad$ $\quad$ $\quad$ $\quad$ I $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ II $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ III $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ IV $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ V \ 30 50 60 70 Base \ 100 200 300 400 \ 10 20 30 40 Base \ 100 200 300 400 \ 5 15 30 50 Base \ 100 200 300 400 \ 30 60 90 120 Base \ 100 200 300 400 \ 10 30 60 100 Base \ 100 200 300 400 Which of the schedules represent(s)a proportional tax?

Suppose that government imposes a specific excise tax on product X of $2 per unit and that the price elasticity of supply of X is unitary (coefficient = 1).If the incidence of the tax is such that the producers of X pay $1.90 of the tax and the consumers pay $.10,we can conclude that the:

The efficiency loss of a tax is the idea that:

A progressive tax is such that:

Government assumes some responsibility for providing a minimum standard of living for all citizens to compensate for the increase in income inequality caused by government tax revenues and expenditures.

If the demand for a product is perfectly inelastic,the incidence of an excise tax will be:

Which of the following statements is most consistent with the benefits-received principle of taxation?

Answer the question on the basis of the following five schedules,all of which represent income tax schedules for an economy.All figures are in billions of dollars. $\quad$ $\quad$ $\quad$ $\quad$ I $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ II $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ III $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ IV $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ V \ 30 50 60 70 Base \ 100 200 300 400 \ 10 20 30 40 Base \ 100 200 300 400 \ 5 15 30 50 Base \ 100 200 300 400 \ 30 60 90 120 Base \ 100 200 300 400 \ 10 30 60 100 Base \ 100 200 300 400 Which of the schedules represent(s)a progressive tax?

With respect to state finance,for most states:

The following data represent a personal income tax schedule.Answer the question on the basis of this information. Taxable Income Total Tax \ 0 \ 0 2,000 200 4,000 600 6,000 1,200 8,000 2,000 10,000 3,000 Refer to the table.If your taxable income is $8,000,your average tax rate is:

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?

Federal employment in the United States is dominated by what two functions?

Answer the question on the basis of the following demand and supply data for a competitive market: Quantity Demanded Price 1,500 \ 10 2,000 9 2,500 8 3,000 7 3,500 6 Quantity Supplied 3,500 3,000 2,500 2,000 1,500 Refer to the given data.If government provides a per-unit subsidy of $2 to suppliers of this product,equilibrium price and quantity would be: