Exam 15: Public Choice, Taxes, and the Distribution of Income

Figure 15.2 Figure 15.2 shows a demand curve and two sets of supply curves, one set more elastic than the other. -Refer to Figure 15.2.If the government imposes an excise tax of $1.00 on every unit sold, the government's revenue from the tax is represented by the area

What is the difference between the voting paradox and the Arrow impossibility theorem?

All of the following occur whenever a government taxes a product except

Why would most people not consider a university student as suffering from poverty?

What is meant by the term "rational ignorance"?

A marginal tax rate is calculated as

Figure 15.6 -Refer to Figure 15.6 to answer the following questions. a.Did the distribution of income become more equal in 2010 that it was in 2009, or did it become less equal? Explain. b.If area A = 1,600, area B = 200, and area C = 3,200, calculate the Gini coefficient for 2009 and the Gini coefficient for 2010.

When the majority of voters have preferences very different from those of the median voter, then the median voter theorem will lead to accurate predictions of the outcomes of elections.

A tax bracket is

A personal exemption refers to

Exemptions and deductions are used

Figure 15.2 Figure 15.2 shows a demand curve and two sets of supply curves, one set more elastic than the other. -Refer to Figure 15.2.If the government imposes an excise tax of $1.00 on every unit sold, what is the size of the deadweight loss, if there is any?

Table 15.3 Taxable Income Tax Payments \ 20,000 \ 2,000 25,000 2,250 32,000 2,560 42,000 2,940 Table 15.3 shows the amount of taxes paid on various levels of income in Notrealia. -Refer to Table 15.3.Notrealia's tax system is

If you pay $2,000 in taxes on an income of $20,000, and a tax of $2,700 on an income of $30,000, then over this range of income the tax is

Suppose the United States has a Gini coefficient of 0.4 and Sweden has a Gini coefficient of 0.25.Which of the following statements is true?

A statistical tool used to measure inequality is

Figure 15.1 -Refer to Figure 15.1.Of the tax revenue collected by the government, the portion borne by producers is represented by the area

If the marginal tax rate is less than the average tax rate as taxable income increases, the tax structure is

Rapid economic growth tends to increase the degree of income mobility.

Figure 15.5 Figure 15.5 shows the Lorenz curves for Islandia and Syldavia. -Refer to Figure 15.5.Which country has the more unequal distribution of income?