Exam 19: Public Finance: the Economics of Taxation

Refer to the information provided in Figure 19.1 below to answer the question(s) that follow. Figure 19.1 -Refer to Figure 19.1. After firms can respond to the payroll tax, employment will have

With respect to the corporate taxation of a monopolist, the capital owners bear most of the burden of the tax.

Refer to the information provided in Table 19.4 below to answer the question(s) that follow. Table 19.4 Total Income Total Taxes \ 10,000 \ 1,000 20,000 2,400 30,000 4,500 40,000 8,000 -Related to the Economics in Practice on page 393: Refer to Table 19.4. At an income level of $10,000, the average tax rate is

The excess burden of a tax is $5,000 and the tax revenue from this tax is $15,000. The total burden of this tax is

The efficiency of a government agency's internal structure depends on how incentives facing workers and agency heads are structured.

Refer to Scenario 19.1 below to answer the question(s) that follow. SCENARIO 19.1: An individual earning $60,000 pays $12,000 in taxes. The marginal tax rate on any income earned above $60,000 is 25%. -Refer to Scenario 19.1. When this person earns $70,000, her average tax rate is

The presence of externalities favors ________ and the presence of other distortionary taxes favors ________.

There would be no excess burden from a tax if demand were

If the government used the revenue from the excise tax on cigarettes to fund research on lung cancer treatment programs, this would be an example of

The ________ is the percentage of a tax base that must be paid in taxes.

The principle of second best states that

In the long run, a reduction in the corporate profits tax will lead to ________ profits in the corporate sector and ________ profits in the noncorporate sector.

Tax shifting is more easily accomplished when all items are subject to taxation.

A tax whose burden is the same proportion of income for all households is

Economic income is equal to consumption plus changes in net worth.

The payroll tax for Social Security in the United States is

The total burden of the tax is

The largest portion of federal government revenues comes from

Refer to the information provided in Table 19.8 below to answer the question(s) that follow. Table 19.8 Total Income Total Taxes \ 20,000 \ 2,000 40,000 4,800 60,000 9,000 80,000 16,000 -Related to the Economics in Practice on page 393: Refer to Table 19.8. At an income level of $60,000, the average tax rate is

Which of the following is a tax based on the benefits-received principle?