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

The median voter theorem states that the outcome of a majority vote is likely to represent the preferences of the voter who is in the political middle.

According to projections for 2016 by the Tax Policy Center, the 20 percent of U.S.taxpayers who make the highest incomes

Which of the following summarizes the information provided by a Lorenz curve?

If you pay $3,000 in taxes on an income of $28,000, and $4,450 in taxes on an income of $38,000, what is your marginal tax rate? Show your work.

Explain the effect of price elasticities of supply and demand on tax incidence.

If your income is $92,000 and you pay taxes of $19,475, what is your average tax rate? Show your work.

Table 18-6 Table 18-6 shows the income tax brackets and tax rates for single taxpayers in Calpernia. -Refer to Table 18-6.Calculate the income tax paid by Sasha, a single taxpayer with an income of $60,000.

Which of the following groups had the highest poverty rate in 2014 in the United States?

Figure 18-9 -Refer to Figure 18-9 to answer the following questions. a.Did the distribution of income become more equal in 2016 that it was in 2015, 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 2015 and the Gini coefficient for 2016.

Table 18-1 Suppose $1 billion is available in the budget and Congress is considering allocating the funds to one of the following three alternatives: 1)Subsidies for education, 2)Research on Alzheimer's or 3)Increased border security.Table 18-1 shows three voters' rankings of the alternatives. -Refer to Table 18-1.Suppose a series of votes are taken in which each pair of alternatives is considered in turn.If the vote is between allocating funds to subsidies for education and research on Alzheimer's

The Gini coefficient for the United States in 1980 was 0.403.In 2014, the coefficient was equal to 0.480.This means that

The decision to make the U.S.income tax system progressive was

Figure 18-6 Figure 18-6 shows the Lorenz curves for Islandia and Syldavia. -Refer to Figure 18-6.If area X = 2,060, area Y = 240, and area Z= 2,700, calculate the Gini coefficient for Syldavia.

Figure 18-4 -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?

In 2014, over 75 percent of the revenue of the U.S.federal government was raised through

Which of the following is used to argue that the self-interest of public policymakers will often lead to actions that are inconsistent with the preferences of the voters they represent?

What is regulatory capture?

According to the benefits-received principle, those who receive the benefits from a government program should pay the taxes that support the program.

What is the term that explains why voters often lack knowledge of pending legislation, and lack knowledge of the views of candidates for office on a range of issues that affect their own (the voters')welfare?

Tax laws affect