Exam 18: Public Choice, Taxes, and the Distribution of Income

A tax is efficient if it imposes a small excess burden relative to the tax revenue it raises.

For a given supply curve, how does the elasticity of demand affect the excess burden of a tax imposed on a product?

Figure 18-1 -Refer to Figure 18-1.Of the tax revenue collected by the government, the portion borne by consumers is represented by the area

A common belief among political analysts is that someone running for his or her party's nomination for president of the United States must choose a different strategy once the nomination is secured.To be nominated, the candidate must appeal to voters from one party-Democrat or Republican-but in a general election a party's nominee must appeal to voters from both parties as well as independent voters.Which of the following offers the best explanation for this change in strategy?

Table 18-9 Table 18-9 shows the income tax brackets and tax rates for single taxpayers in Monrovia. -Refer to Table 18-9.How much income tax does Sylvia pay if she is a single taxpayer with an income of $70,000?

Figure 18-1 -Refer to Figure 18-1.Area B + C represents

The voting paradox suggests that the "voting market," as represented by elections

If you pay $2,000 in taxes on an income of $20,000, and a tax of $3,500 on an income of $30,000, then over this range of income the tax is

Figure 18-2 Figure 18-2 shows a demand curve and two sets of supply curves, one set more elastic than the other. -Refer to Figure 18-2.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

A statistical tool used to measure income inequality is

Table 18-6 Table 18-6 shows the income tax brackets and tax rates for single taxpayers in Calpernia. -Refer to Table 18-6.How much income tax does Sasha pay if he is a single taxpayer with an income of $60,000?

Economists caution that conventional statistics used to estimate the extent of poverty in the United States fail to account for benefits people receive that, if considered, would reduce the amount of poverty.Which of the following is an example of these benefits?

What is meant by "tax incidence"?

Which of the following is not an example of rent-seeking behavior?

Many economists believe that when the federal government establishes an agency to regulate a particular industry, the regulated firms try to influence the agency even if these actions do not benefit the public.Economists refer to this result of government regulation by which of the following terms?

Which of the following is a consequence of the voting paradox?

Figure 18-5 Figure 18-5 shows the Lorenz curve for a hypothetical country. -Refer to Figure 18-5.The highest 20 percent of households

Congressman Gallstone seeks support from his colleagues for a bill he sponsors that will establish a new national park in his district.He offers to support Congresswoman Disrail's proposal to build a new library in her district in exchange for her vote for his national park bill.This is an example of

The federal government does not tax employees on on the amount that employers spend providing them with health insurance.When comparing employees who receive employee-provided health insurance and consumers who must pay for their own health insurance, the non-taxed amount spent on employer-provided health insurance is an example of

Horizontal equity is achieved when taxes are collected from those who benefit from the government expenditure of the tax revenue.