Exam 12: Social Policy and Inequality

What is meant by 'tax incidence'? -------------------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------------------

Rapid economic growth tends to increase the degree of income mobility.

Which formula below would a taxpayer use to calculate marginal tax rate?

An income tax system is ________ if marginal tax rates increase as income increases.

'For a given supply curve,the excess burden of a tax will be greater when the demand for a product is less elastic than when the demand is more elastic.' This statement is

When the demand for a product is less elastic than the supply,consumers pay the majority of the tax on the product.

Explain the effect of price elasticities of supply and demand on tax incidence. -------------------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------------------

Globalisation is positively associated with

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

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?

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

The actual division of the burden of a tax is called -.

Figure 12.1 -Refer to Figure 12.1.Area B + C + F + G represents

Suppose the government wants to finance housing for low-income families by placing a tax on the purchase of luxury homes.Assume the government defines a luxury home as a home that is purchased for at least $1 million.This tax is consistent with the

Suppose the government imposes an 8 per cent sales tax on clothing items and the tax is levied on sellers.Who pays for the tax in this situation? (Assume that the demand curve is downward sloping and that the supply curve is upward sloping.)

Last year,Anthony Millanti earned exactly $30 000 of taxable income.Assume that the income tax system used to determine Anthony's tax liability is progressive.The table below lists the tax brackets and the marginal tax rates that apply to each bracket. a.Draw a new table that lists the amounts of income tax that Anthony is obligated to pay for each tax bracket,and the total tax he owes the government.(Assume that there are no allowable tax deductions,tax credits,personal exemptions,or any other deductions that Anthony can use to reduce his tax liability). b.Determine Anthony's average tax rate. $\begin{array}{|c|c|}\hline\text { Tax Bracket } & \text { Marginal Tax } \\(\$) & \text { Rate }\\\hline 0-5000 & 0.05(5 \%) \\\hline 5001-10000 & 0.10(10 \%) \\\hline 10001-15 & \\000 & 0.15(15 \%) \\\hline 15001-20 & \\000 & 0.20(20 \%) \\\hline 20001-25 & \\000 & 0.25(25 \%) \\\hline 25001-30 & \\000 & 0.30(30 \%) \\\hline\end{array}$ -------------------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------------------

Which formula below would a taxpayer use to calculate an average tax rate?

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

For a given supply curve,how does the elasticity of demand affect the burden of a tax imposed on a product?

If your income is $92 000 and you pay taxes of $19 475,what is your average tax rate? Show your work. -------------------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------------------