Question 1

Table 12-10  
-Refer to Table 12-10. If Miss Kay has $80,000 in taxable income, her marginal tax rate is

Accepted Answer

A)  15%. 
B)  25%. 
C)  28%. 
D)  33%. 
A)  15%. 
B)  25%. 
C)  28%. 
D)  33%.

Question 2

Table 12-10  
-Refer to Table 12-10. If Willie has $170,000 in taxable income, his average tax rate is

Accepted Answer

A)  23.8%. 
B)  24.3%. 
C)  25.9%. 
D)  28.0%. 
A)  23.8%. 
B)  24.3%. 
C)  25.9%. 
D)  28.0%.

Question 3

Scenario 12-1
Ken places a $20 value on a cigar, and Mark places a $17 value on it. The equilibrium price for this brand of cigar is $15.
-Refer to Scenario 12-1. Suppose the government levies a tax of $3 on each cigar, and the equilibrium price of a cigar increases to $18. How much tax revenue is collected?

Accepted Answer

A)  $0 
B)  $2 
C)  $3 
D)  $6 
A)  $0 
B)  $2 
C)  $3 
D)  $6

Question 4

Table 12-10  
-Refer to Table 12-10. If Miss Kay has $80,000 in taxable income, her average tax rate is

Accepted Answer

A)  18.5%. 
B)  20.2%. 
C)  21.8%. 
D)  25.0%. 
A)  18.5%. 
B)  20.2%. 
C)  21.8%. 
D)  25.0%.

Question 5

In 2011, the average American paid approximately how much to the federal government in taxes?

Accepted Answer

A)  $2,000 
B)  $2,500 
C)  $8,000 
D)  $10,500 
A)  $2,000 
B)  $2,500 
C)  $8,000 
D)  $10,500

Question 6

Table 12-25  
-Refer to Table 12-25. Which plan illustrates a progressive tax?

Accepted Answer

Plan C illustrates a progressi

Question 7

Table 12-11  
-Refer to Table 12-11. If Peggy has taxable income of $43,000, her average tax rate is

Accepted Answer

A)  14.7%. 
B)  16.3%. 
C)  20.8%. 
D)  24.0%. 
A)  14.7%. 
B)  16.3%. 
C)  20.8%. 
D)  24.0%.

Question 8

Table 12-7
The following table shows the marginal tax rates for unmarried individuals for two years.  
-Refer to Table 12-7. For an individual who earned $80,000 in both years, which of the following statements is true regarding the individual's marginal tax rate?

Accepted Answer

A)  The marginal tax rate is higher in 2010 than in 2009. 
B)  The marginal tax rate is the same in 2010 as it was in 2009. 
C)  The marginal tax rate is lower in 2010 than in 2009. 
D)  With a proportional tax, as in 2010, it is not possible to determine the individual's marginal tax rate so it is not possible to compare the marginal tax rates in the two years. 
A)  The marginal tax rate is higher in 2010 than in 2009. 
B)  The marginal tax rate is the same in 2010 as it was in 2009. 
C)  The marginal tax rate is lower in 2010 than in 2009. 
D)  With a proportional tax, as in 2010, it is not possible to determine the individual's marginal tax rate so it is not possible to compare the marginal tax rates in the two years.

Question 9

With a lump-sum tax, the

Accepted Answer

A)  marginal tax rate is always less than the average tax rate. 
B)  average tax rate is always less than the marginal tax rate. 
C)  marginal tax rate falls as income rises. 
D)  marginal tax rate rises as income rises. 
A)  marginal tax rate is always less than the average tax rate. 
B)  average tax rate is always less than the marginal tax rate. 
C)  marginal tax rate falls as income rises. 
D)  marginal tax rate rises as income rises.

Question 10

Table 12-5  
-Refer to Table 12-5. What is the marginal tax rate for a person who makes $60,000?

Accepted Answer

A)  20% 
B)  23% 
C)  40% 
D)  45% 
A)  20% 
B)  23% 
C)  40% 
D)  45%

Question 11

Table 12-25  
-Refer to Table 12-25. Which plan illustrates a regressive tax?

Accepted Answer

Plan A illustrates a regressiv

Question 12

The income tax requires that taxpayers pay 10percent on the first $40,000 of income and 20 percent on all income over $40,000. Karen paid $6,000 in taxes. What were her marginal and average tax rates?

Accepted Answer

A)  20 percent and 12 percent, respectively 
B)  20 percent and 15 percent, respectively 
C)  10 percent and 12 percent respectively 
D)  10 percent and 15 percent respectively 
A)  20 percent and 12 percent, respectively 
B)  20 percent and 15 percent, respectively 
C)  10 percent and 12 percent respectively 
D)  10 percent and 15 percent respectively

Question 13

List several examples of the administrative burden of the U.S. income tax system.

Accepted Answer

time spent filling out tax for

Question 14

The largest category of expenditures for state and local governments is .

Accepted Answer

The answer of The largest category of expenditures for state...

Question 15

Which of the following statements is correct?

Accepted Answer

A)  The U.S. federal government collected a higher percentage of income in taxes in the early 1900s than in the early 2000s. 
B)  The U.S. federal government collects a higher percentage of income in taxes than many European countries, including France and Germany. 
C)  The U.S. federal government collects a lower percentage of income in taxes than many developing countries, including Mexico and India. 
D)  The U.S. federal government collects a similar percentage of income in taxes as Brazil and Japan. 
A)  The U.S. federal government collected a higher percentage of income in taxes in the early 1900s than in the early 2000s. 
B)  The U.S. federal government collects a higher percentage of income in taxes than many European countries, including France and Germany. 
C)  The U.S. federal government collects a lower percentage of income in taxes than many developing countries, including Mexico and India. 
D)  The U.S. federal government collects a similar percentage of income in taxes as Brazil and Japan.

Question 16

With a lump-sum tax,the average tax rate for high income taxpayers will be

Accepted Answer

A)  the same as the average tax rate for low income taxpayers. 
B)  lower than the average tax rate for low income taxpayers. 
C)  higher than the average tax rate for high income taxpayers. 
D)  Any of the above could be true under a regressive tax system. 
A)  the same as the average tax rate for low income taxpayers. 
B)  lower than the average tax rate for low income taxpayers. 
C)  higher than the average tax rate for high income taxpayers. 
D)  Any of the above could be true under a regressive tax system.

Question 17

In 2011, the largest source of receipts for state and local governments was individual income taxes.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements is correct?

Accepted Answer

A)  A general sales tax on food is regressive when low-income taxpayers spend a larger proportion of their income on food than high-income taxpayers. 
B)  A general sales tax on food is regressive when middle income taxpayers spend a smaller proportion of their income on food than high-income taxpayers. 
C)  A general sales tax on food is regressive when high-income taxpayers spend a larger proportion of their income on food than middle income taxpayers. 
D)  A general sales tax on food is regressive when high-income taxpayers spend a larger proportion of their income on food than low-income taxpayers. 
A)  A general sales tax on food is regressive when low-income taxpayers spend a larger proportion of their income on food than high-income taxpayers. 
B)  A general sales tax on food is regressive when middle income taxpayers spend a smaller proportion of their income on food than high-income taxpayers. 
C)  A general sales tax on food is regressive when high-income taxpayers spend a larger proportion of their income on food than middle income taxpayers. 
D)  A general sales tax on food is regressive when high-income taxpayers spend a larger proportion of their income on food than low-income taxpayers.

Question 19

Table 12-9
United States Income Tax Rates for a Single Individual, 2012 and 2013.  
-Refer to Table 12-9. Jake is a single person whose taxable income is $20,000 a year. What happened to his average tax rate between 2012 and 2013?

Accepted Answer

A)  It increased. 
B)  It decreased. 
C)  It did not change. 
D)  We do not have enough information to answer this question. 
A)  It increased. 
B)  It decreased. 
C)  It did not change. 
D)  We do not have enough information to answer this question.

Question 20

If Christopher earns $80,000 in taxable income and pays $20,000 in taxes, his average tax rate is 20 percent.

Accepted Answer

A) True 
 B)False

Exam 12: The Design of the Tax System

Table 12-10 -Refer to Table 12-10. If Miss Kay has $80,000 in taxable income, her marginal tax rate is

Table 12-10 -Refer to Table 12-10. If Willie has $170,000 in taxable income, his average tax rate is

Table 12-10 -Refer to Table 12-10. If Miss Kay has $80,000 in taxable income, her average tax rate is

In 2011, the average American paid approximately how much to the federal government in taxes?

Table 12-25 -Refer to Table 12-25. Which plan illustrates a progressive tax?

Table 12-11 -Refer to Table 12-11. If Peggy has taxable income of $43,000, her average tax rate is

Table 12-7 The following table shows the marginal tax rates for unmarried individuals for two years. -Refer to Table 12-7. For an individual who earned $80,000 in both years, which of the following statements is true regarding the individual's marginal tax rate?

With a lump-sum tax, the

Table 12-5 -Refer to Table 12-5. What is the marginal tax rate for a person who makes $60,000?

Table 12-25 -Refer to Table 12-25. Which plan illustrates a regressive tax?

The income tax requires that taxpayers pay 10percent on the first $40,000 of income and 20 percent on all income over $40,000. Karen paid $6,000 in taxes. What were her marginal and average tax rates?

List several examples of the administrative burden of the U.S. income tax system.

The largest category of expenditures for state and local governments is .

Which of the following statements is correct?

With a lump-sum tax,the average tax rate for high income taxpayers will be

In 2011, the largest source of receipts for state and local governments was individual income taxes.

Which of the following statements is correct?

Table 12-9 United States Income Tax Rates for a Single Individual, 2012 and 2013. -Refer to Table 12-9. Jake is a single person whose taxable income is $20,000 a year. What happened to his average tax rate between 2012 and 2013?

If Christopher earns $80,000 in taxable income and pays $20,000 in taxes, his average tax rate is 20 percent.

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: the Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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