Exam 10: The Government in the Economy: Taxation and Regulation

Scenario: Concerns about its citizens' financial health after retirement, the government of LibPat is considering a few different approaches: (1) the government deducts a certain amount from worker's paychecks and invest on their behalf; (2) the government enrolls workers in a retirement saving plan but gives them a chance to opt out of the plan or choose a different plan; (3) the government runs a nationwide campaign to inform people of the importance of retirement savings. -Refer to the scenario above.Which policy allows the most consumer sovereignty?

What is a welfare state?

A marginal tax rate is the ________.

The proposed tax on sugary soft drinks in New York city is an example of ________.

A price ceiling refers to ________.

________ are the largest source of the federal tax revenue.

The table below shows the tax brackets for different income groups in a country: -Refer to the table above.If Jack has an annual income of $50,000 and Jill earns $77,500,which of the following is true?

The following figure depicts the market for a certain good and the incidence of a tax on consumers. -Refer to the figure above.The producer surplus after the tax imposed on consumer is ________.

The supply of milk in Nexus City is perfectly elastic.If a tax is imposed on each gallon of milk sold,________.

Scenario: Consider the following figure, which shows a competitive market. Suppose the government imposes a price ceiling policy of $2 on this market. -Refer to the above scenario.After the imposition of this $2 price control policy,what is the amount of consumer surplus in the market?

The two biggest items of spending for state governments are ________.

Scenario: There are 4 households in a locality. The annual income of the first household is $20,000, the annual income of the second household is $47,000, the annual income of the third household is $50,000, and the annual income of the fourth household is $71,000. -Refer to the scenario above.If the local government follows a progressive tax system,which family pays the largest amount in tax?

A price ceiling does not lead to a deadweight loss if ________.

If the market supply curve of a commodity is more elastic than its market demand curve,tax incidence is likely to fall ________.

Explain the equity-efficiency trade-off.Give an example of the conflicting equity and efficiency outcomes of a policy.

Taxes listed as Federal Insurance Contribution Act taxes on the employee paystub are ________.

The idea behind legalization of recreational marijuana is in line with ________.

If a tax is imposed on a good,________.

Which of the following accounts for the largest portion of federal government spending?

The "underground economy" is also known as the ________.