Exam 12: Social Policy and Inequality

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? -------------------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------------------

According to the ability-to-pay principle of taxation,

If you pay $3000 in taxes on an income of $28 000,and $4450 in taxes on an income of $38 000,what is your marginal tax rate? Show your work. -------------------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------------------

The marginal tax rate is

Figure 12.6 Figure 12.6 shows the Lorenz curves for Islandia and Syldavia. -Refer to Figure 12.6.Which country has the more unequal distribution of income?

Since lower-income people spend a larger proportion of their incomes on groceries than do higher-income people,if grocery stores were required by law to charge a 10-cent fee for disposable bags,this fee could be considered

When considering changes in tax policy,economists usually focus on

How would the elimination of a sales tax affect the market for a product that had been subject to the tax?

What is a statistical tool used to measure inequality?

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

The average tax rate is calculated as

Horizontal equity means that two people in identical economic situations should pay the same amount of taxes.

Describe the main factors economists believe cause inequality of income. -------------------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------------------

If your income is $40 000 and you pay taxes of $4650,what is your average tax rate? Show your work. -------------------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------------------

To what does a personal exemption apply?

Figure 12.2 Figure 12.2 shows a demand curve and two sets of supply curves, one set more elastic than the other. -Refer to Figure 12.2.If the government imposes an excise tax of $1.00 on every unit sold,the government's revenue from the tax

According to the benefits-received principle of taxation,

All of the following occur whenever a government taxes a product except

If you pay $3000 in taxes on an income of $30 000,and a tax of $4400 on an income of $40 000,then over this range of income the tax is -.

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