Exam 17: Taxation and Resource Allocation

Figure 18-2 -Figure 18-2 shows the widget market before and after an excise tax is imposed.After the tax is imposed, the amount that a firm keeps for itself from the sale of each widget is ____.

A proportional tax is one in which the fraction of income paid in taxes rises as a person's income increases.

Payroll tax is a proportional tax.

Figure 18-3 -In which panel of Figure 18-3 would an excise tax be borne entirely by the supplier?

The Social Security System

The concept that describes the situation where the economy has used every available opportunity to make someone better off without making someone else worse off is

Members of the European Union (EU), rely heavily on this form of indirect taxes.

"Those most able should pay the highest taxes" reflects the

The total burden of a tax is the

An excess burden is present when taxpayers alter their behavior on account of taxation.

Which of the following statements is not true?

The people most likely to pay little personal income tax to the U.S.government are

Who actually pays an excise tax

A head tax applied to each person in the United States would

The term "fiscal federalism" refers to

An excise tax

In practice, turning horizontal and vertical equity into tax law

One major problem with Social Security is that it is a "pay as you go" system.

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 ____.

Under a proportional tax, the fraction of income paid in taxes