Question 1

Which of the following statements is true ?

Accepted Answer

A) Sales, excise, and flat-rate taxes violate the ability-to-pay principle of taxation fairness because each results in a greater burden on the poor than the rich. 
B) Government failure may occur if voters are rationally ignorant. 
C) Government failure may occur because of special-interest group political pressure. 
D) All of these. 
A) Sales, excise, and flat-rate taxes violate the ability-to-pay principle of taxation fairness because each results in a greater burden on the poor than the rich. 
B) Government failure may occur if voters are rationally ignorant. 
C) Government failure may occur because of special-interest group political pressure. 
D) All of these.

Question 2

Under a progressive tax system, the tax rate increases as income increases.

Accepted Answer

A) True 
 B)False

Question 3

A tax that is structured so that people pay the same percentage of their income in taxes is called a(n):

Accepted Answer

A) flat tax. 
B) regressive tax. 
C) progressive tax. 
D) excise tax. 
A) flat tax. 
B) regressive tax. 
C) progressive tax. 
D) excise tax.

Question 4

Which of the following statements is true ?

Accepted Answer

A) A sales tax on food is a regressive tax. 
B) The largest source of federal government tax revenue is individual income taxes. 
C) The largest source of state and local governments tax revenue is sales and excise taxes. 
D) All of the above are true. 
E) None of the above are true. 
A) A sales tax on food is a regressive tax. 
B) The largest source of federal government tax revenue is individual income taxes. 
C) The largest source of state and local governments tax revenue is sales and excise taxes. 
D) All of the above are true. 
E) None of the above are true.

Question 5

If a person is taxed $100 on an income of $1,000, taxed $220 on an income of $2,000, and taxed $390 on an income of $3,000, this person is paying a(n):

Accepted Answer

A) progressive tax. 
B) poll tax. 
C) regressive tax. 
D) excise tax. 
E) proportional tax. 
A) progressive tax. 
B) poll tax. 
C) regressive tax. 
D) excise tax. 
E) proportional tax.

Question 6

A person who is in a 31 percent marginal tax bracket and has a total taxable income of $100,000 will owe $31,000 in taxes.

Accepted Answer

A) True 
 B)False

Question 7

Currently, total government expenditures in the United States have totaled about:

Accepted Answer

A) one-tenth of GDP. 
B) one-fifth of GDP. 
C) 40 percent of GDP. 
D) one-half of GDP. 
A) one-tenth of GDP. 
B) one-fifth of GDP. 
C) 40 percent of GDP. 
D) one-half of GDP.

Which of the following statements is true ?

Under a progressive tax system, the tax rate increases as income increases.

A tax that is structured so that people pay the same percentage of their income in taxes is called a(n):

Which of the following statements is true ?

If a person is taxed $100 on an income of $1,000, taxed $220 on an income of $2,000, and taxed $390 on an income of $3,000, this person is paying a(n):

A person who is in a 31 percent marginal tax bracket and has a total taxable income of $100,000 will owe $31,000 in taxes.

Currently, total government expenditures in the United States have totaled about:

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Gross Domestic Product

Business Cycles and Unemployment

Inflation

The Keynesian Model

The Keynesian Model in Action

Aggregate Demand and Supply

Fiscal Policy

Federal Deficits, Surpluses, and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

The Phillips Curve and Expectations Theory

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Applying Graphs to Economics

Consumer Surplus, Producer Surplus, and Market Efficiency

the Self-Correcting Aggregate Demand and Supply Model

Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

Filters

Exam 12: The Public Sector

Which of the following statements is true ?

Under a progressive tax system, the tax rate increases as income increases.

A tax that is structured so that people pay the same percentage of their income in taxes is called a(n):

Which of the following statements is true ?

If a person is taxed $100 on an income of $1,000, taxed $220 on an income of $2,000, and taxed $390 on an income of $3,000, this person is paying a(n):

A person who is in a 31 percent marginal tax bracket and has a total taxable income of $100,000 will owe $31,000 in taxes.

Currently, total government expenditures in the United States have totaled about:

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Gross Domestic Product

Business Cycles and Unemployment

Inflation

The Keynesian Model

The Keynesian Model in Action

Aggregate Demand and Supply

Fiscal Policy

Federal Deficits, Surpluses, and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

The Phillips Curve and Expectations Theory

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Applying Graphs to Economics

Consumer Surplus, Producer Surplus, and Market Efficiency

the Self-Correcting Aggregate Demand and Supply Model

Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

Filters