Exam 17: Taxation and Resource Allocation

If Gordon's average tax rate is 10 percent when he earns $100 and his average tax rate is 10.25 percent when he earns $101, then

A tax system under which an individual pays a higher fraction of his income in taxes at higher levels of income is formally described as

From the passage of the 16th amendment to the U.S.Constitution, income taxes became the primary source of income for the United States.

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

Compared to other countries, the U.S.federal government relies

Which is not an effect of tax loopholes?

The share of GDP taken by taxes is considerably higher in the United States than in other countries.

Figure 18-1 -According to the graph in Figure 18-1, tax collections will be which of the following?

Social Security payroll taxes are examples of

Sales taxes, property taxes, and value-added taxes are examples of indirect taxes.

Explain why some argue that income tax loopholes primarily benefit the rich.

Officially, the payroll tax is referred to as

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

Which of the following is an example of an indirect tax?

When a tax is imposed on an item, it can generally be said that the incidence of the tax is

The largest single source of revenue for the federal government is the

Explain whether or not the ability-to-pay principle of tax equity is consistent with the benefits received principle of taxation.

Examples of indirect taxes are