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

Figure 18-7 Figure 18-7 shows the Lorenz curve for a hypothetical country. -Refer to Figure 18-7.The second highest 20 percent of households

The average tax rate is calculated as

Holding all other factors constant, income earned from capital is more unequally distributed than income earned from labor.

The largest percentage of federal income tax revenue in the United States is paid by the

As a group, people with high incomes are likely to have

Economist Kenneth Arrow has shown mathematically that no system of voting will consistently represent the underlying preferences of voters.This finding is called

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

What is a Lorenz curve and what is a Gini coefficient?

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

Between 1980 and 2014, income inequality in the United States has increased in part due to expanding international trade.How does expanding international trade contribute to income inequality?

An example of a payroll tax in the United States is

A statistical tool used to measure inequality is

If official poverty statistics for the United States included transfer payments individuals receive from the government, such as Social Security payments and other non-cash benefits such as food stamps,

The government of Silverado raises revenue through a general income tax paid by all its residents to operate the city's marina.The marina is used by private boat owners.This method of raising revenue to operate the marina is

Rational ignorance

According to the benefits-received principle of taxation

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

The median voter model implies that

If your income is $40,000 and you pay taxes of $4,650, what is your average tax rate? Show your work.

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,