Question 1

Taxes on have not been used in Canada.

Accepted Answer

A) net wealth 
B) capital 
C) wages 
D) real property 
A) net wealth 
B) capital 
C) wages 
D) real property A

Question 2

An estate tax reflects the market value of a property.

Accepted Answer

A) True 
B) False 
C) Uncertain 
A) True 
B) False 
C) Uncertain B

Question 3

In the traditional view, the property tax that falls on structures shifts the entire burden to the

Accepted Answer

A) government. 
B) bank. 
C) landowners. 
D) tenants. 
A) government. 
B) bank. 
C) landowners. 
D) tenants. D

Question 4

Statistics Canada estimated that the top 10 percent of wealth holders owned of wealth in Canada in 2012.

Accepted Answer

A) 48 percent 
B) 71 percent 
C) 10 percent 
D) 99 percent 
A) 48 percent 
B) 71 percent 
C) 10 percent 
D) 99 percent

Question 5

The new view is that property tax is a(n)

Accepted Answer

A) uniform tax. 
B) capital tax. 
C) user fee. 
D) excise tax on land and structures. 
A) uniform tax. 
B) capital tax. 
C) user fee. 
D) excise tax on land and structures.

Question 6

In the new view, assuming property tax can be approximated as a uniform tax, the burden falls entirely on owners of capital.

Accepted Answer

A) True 
B) False 
C) Uncertain 
A) True 
B) False 
C) Uncertain

Question 7

There is no federal property tax in Canada.

Accepted Answer

A) True 
B) False 
C) Uncertain 
A) True 
B) False 
C) Uncertain

Question 8

Property tax in Canada is predominately a provincial tax.

Accepted Answer

A) True 
B) False 
C) Uncertain 
A) True 
B) False 
C) Uncertain

Question 9

Bob and Doug both own properties with market value $550,000. Bob's property value is assessed at
$620,000 while Doug's is assessed at $670,000. Suppose they face the same statutory tax rate of 1.5 percent. What are the effective tax rates faced by bob and Doug? Why would statutory tax rates differ from the effective tax rates?

Accepted Answer

Bob's effective rate is 1.69% = $9,300 /

Question 10

The traditional view is that property tax is a(n)

Accepted Answer

A) uniform tax. 
B) capital tax. 
C) user fee. 
D) excise tax on land and structures. 
A) uniform tax. 
B) capital tax. 
C) user fee. 
D) excise tax on land and structures.

Question 11

The assessment ratio is

Accepted Answer

A) the tax liability to the tax rate. 
B) the ratio of assessed value to market value. 
C) the sale value at death to the market value. 
D) always lower than the market ratio. 
A) the tax liability to the tax rate. 
B) the ratio of assessed value to market value. 
C) the sale value at death to the market value. 
D) always lower than the market ratio.

Question 12

Refer to the figure below. Suppose that the supply curve is constant at $10. Suppose further that the before-tax demand curve DB can be written as B = 20 - P/2, where B is the number of structures per year and P is the price.
   (A)Find B0.
(B)Suppose that the after-tax demand curve,   , can be written as B = 20 - P. Find B1 and   .

Accepted Answer

(A)Insert $10 into before-tax demand equ

Question 13

Property tax as a user fee implies that

Accepted Answer

A) tax revenue is zero. 
B) the burden is borne by landowners. 
C) the burden is borne by owners of capital. 
D) the property tax creates no excess burden. 
A) tax revenue is zero. 
B) the burden is borne by landowners. 
C) the burden is borne by owners of capital. 
D) the property tax creates no excess burden.

Question 14

The property tax receives criticism because

Accepted Answer

A) it is highly visible. 
B) it is perceived as regressive. 
C) it is levied on an estimated value. 
D) all of these answers are correct. 
A) it is highly visible. 
B) it is perceived as regressive. 
C) it is levied on an estimated value. 
D) all of these answers are correct.

Question 15

Property taxes are not very popular. People might dislike other taxes just as much, but feel powerless to change them. If the assessed value of the property does not rise or, in fact, declines, then this should be followed by decreases in tax rates. This, however, is not welcomed by property owners, either. Why?

Accepted Answer

Although tax rates may be lower, this de

Question 16

In the traditional view, the supply curve of structures is

Accepted Answer

A) perfectly vertical. 
B) perfectly horizontal. 
C) upward sloping. 
D) downward sloping. 
A) perfectly vertical. 
B) perfectly horizontal. 
C) upward sloping. 
D) downward sloping.

Question 17

Refer to the figure below. Suppose that the supply of land is constant at L acres, and rent per acre is
$400. In addition, the before-tax demand for land can be characterized by the equation P = 500 - 2L, where L is the acres of land and P is the rent.
   (A)What is the constant supply of land (L)in the market?
(B)If the after-tax demand curve,   , can be written as P = 400 - 4L, what is   , and how much tax revenue is generated?

Accepted Answer

(A)If the rent is 400, then the constant

Question 18

The assessed value of a home is

Accepted Answer

A) always lower than its market value. 
B) the annual rate of deprecation of a home because of use. 
C) an annual 6% increase in the value of a home. 
D) the value that the jurisdiction uses to assign taxes. 
A) always lower than its market value. 
B) the annual rate of deprecation of a home because of use. 
C) an annual 6% increase in the value of a home. 
D) the value that the jurisdiction uses to assign taxes.

Question 19

An example of a stock variable is

Accepted Answer

A) consumption. 
B) sales. 
C) wealth. 
D) income. 
A) consumption. 
B) sales. 
C) wealth. 
D) income.

Question 20

In the traditional view, evidence suggests the structures part of the property tax is probably

Accepted Answer

A) progressive. 
B) regressive. 
C) neither regressive nor progressive. 
D) zero. 
A) progressive. 
B) regressive. 
C) neither regressive nor progressive. 
D) zero.

Taxes on have not been used in Canada.

An estate tax reflects the market value of a property.

In the traditional view, the property tax that falls on structures shifts the entire burden to the

Statistics Canada estimated that the top 10 percent of wealth holders owned of wealth in Canada in 2012.

The new view is that property tax is a(n)

In the new view, assuming property tax can be approximated as a uniform tax, the burden falls entirely on owners of capital.

There is no federal property tax in Canada.

Property tax in Canada is predominately a provincial tax.

The traditional view is that property tax is a(n)

The assessment ratio is

Property tax as a user fee implies that

The property tax receives criticism because

In the traditional view, the supply curve of structures is

The assessed value of a home is

An example of a stock variable is

In the traditional view, evidence suggests the structures part of the property tax is probably

Introduction to Public Finance in Canada

Fundamentals of Welfare Economics

Cost-Benefit Analysis

Public Goods

Externalities

Income Redistribution

Public Choice

Fiscal Federalism

Health Care

Employment Insurance

Public Pensions

Social Welfare Programs

Education

Taxation and Income Distribution

Taxation and Efficiency

Efficient and Equitable Taxation

The Personal Income Tax

Personal Taxation and Behaviour

Consumption Taxation

The Corporation Tax

Filters

Exam 20: Taxes on Wealth and Property

Taxes on have not been used in Canada.

An estate tax reflects the market value of a property.

In the traditional view, the property tax that falls on structures shifts the entire burden to the

Statistics Canada estimated that the top 10 percent of wealth holders owned of wealth in Canada in 2012.

The new view is that property tax is a(n)

In the new view, assuming property tax can be approximated as a uniform tax, the burden falls entirely on owners of capital.

There is no federal property tax in Canada.

Property tax in Canada is predominately a provincial tax.

The traditional view is that property tax is a(n)

The assessment ratio is

Property tax as a user fee implies that

The property tax receives criticism because

In the traditional view, the supply curve of structures is

The assessed value of a home is

An example of a stock variable is

In the traditional view, evidence suggests the structures part of the property tax is probably

Introduction to Public Finance in Canada

Fundamentals of Welfare Economics

Cost-Benefit Analysis

Public Goods

Externalities

Income Redistribution

Public Choice

Fiscal Federalism

Health Care

Employment Insurance

Public Pensions

Social Welfare Programs

Education

Taxation and Income Distribution

Taxation and Efficiency

Efficient and Equitable Taxation

The Personal Income Tax

Personal Taxation and Behaviour

Consumption Taxation

The Corporation Tax

Filters