Exam 16: The Distribution of Income and Social Policy

-Refer to Figure 16-6. Which country has the more unequal distribution of income?

A statistical tool used to measure inequality is

Which of the following summarises the information provided by a Lorenz curve?

The horizontal-equity principle of taxation is not easy to use in practice because

-Refer to Figure 16-4. Rank the above panels in terms of most unequal income distribution to least unequal income distribution.

Policymakers focus on marginal tax rate changes when making changes in the tax code because the marginal tax rate

The actual division of a tax between buyers and sellers in a market is the excess burden of the tax.

There is a difference between who is legally required to send a tax payment to the government and who bears the burden of the tax. Which of the following would have the most impact on who bears the burden of an excise tax?

-Refer to Figure 16-2. If the government imposes an excise tax of $1.00 on every unit sold, the government's revenue from the tax is represented by the area

If the government is most interested in minimising excess burden of an excise tax, should it impose the tax on goods that are elastic or on goods that are inelastic?

The excess burden of a tax

All Gini coefficients must lie between 0 and 1. The lower the value,

The poverty rate is defined as the percentage of the

If the marginal tax rate is less than the average tax rate as taxable income increases, the tax structure is

Horizontal equity is achieved when taxes are collected from those who benefit from the government expenditure of the tax revenue.

The person or firm that pays a tax bears the burden of the tax.

The idea that individuals should be taxed in proportion to the marginal benefits that they receive from public goods is called

The term 'payroll taxes' is often used to refer to

If grocery stores were legally required to charge a 10-cent fee for disposable grocery bags, who would bear the largest burden of this fee?

Vertical-equity is most closely associated with which of the following goals or principles?