Exam 17: Taxation and Resource Allocation

The Social Security system in the United States today is

The incidence of a tax explains what group pays the burden of a tax.

Figure 18-1 -According to the graph in Figure 18-1, the increase in the amount that consumers pay as a result of the tax is

Direct taxes are levied on specific economic activities.

The way in which most persons pay their personal income tax is in the form of

Figure 18-2 -Figure 18-2 shows the widget market before and after an excise tax is imposed.The revenue collected by the tax is ____.

Who bears the burden of an excise tax if demand is perfectly inelastic; if supply is perfectly inelastic? Use graphs in your explanation.

Edgar Browning and William Johnson, in a paper published in the Journal of Political Economy (1984), presented evidence that a one-dollar transfer to the bottom 40 percent of income distribution costs the top 60 percent nine dollars.If correct, this finding proves

In 1984, the South Carolina State Supreme Court ruled that a 20 percent admission tax on X-rated movies was unconstitutional.When the affected cinemas sought a refund of collected taxes, they were denied on the grounds that the tax, although collected by the theater, was indeed paid by the theatergoers.The Supreme Court apparently believed

The federal government of the United States relies heavily on value-added taxes.

The method of financing the Social Security system until 1983 is best described as

The share of GDP taken by taxes has increased dramatically since the 1960s.

Horizontal equity is a difficult concept to implement because

Payroll tax is a proportional tax.

If demand is more elastic, the portion of an excise tax borne by a buyer will

What are tax loopholes and what are their effects?

States rely primarily on income taxes as a source of revenue.

The total burden of a tax equals tax receipts plus excess burden.

Taxation alters the behavior patterns of individuals.

Which of the following is a direct tax?