Exam 17: Taxation and Resource Allocation

The percentage of the burden of an excise tax that is borne by sellers generally depends on the

The burden of the payroll tax falls entirely on the employee regardless of how it is formally divided between employer and employee if the

What are the arguments for and against federal government grants to states?

Philip purchased one million dollars' worth of New York City bonds.His interest earnings were $100,000.His total federal tax on this income will be

A head tax is

A tax that does not change consumers' behavior creates no

The incidence of a tax refers to

The total burden of a tax equals tax collections minus excess burdens.

Payroll taxes are used to collect revenue for the Social Security program.

The major objective of the 1986 tax reform was to: (i) enhance efficiency by lowering marginal tax rates; (ii) enhance equity by closing "loopholes."

The marginal tax rate has less effect on economic incentives than does the average tax rate.

Which of the following is an example of a direct tax?

The money for Social Security payments to current retirees comes from

The share of GDP taken by taxes has increased dramatically since the 1960s.

The second largest source of revenue for the federal government is the

Figure 18-1 -According to the graph in Figure 18-1, the increase in the amount that consumers pay as a result of the tax is

The payroll tax appears to be a proportional tax.In reality it is

"People who make more money should pay higher taxes" is an example of

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

The payroll tax is the federal government's biggest source of revenue.