Exam 18: Taxation and Resource Allocation

The courts in some states have declared the financing of public schools by local property taxes unconstitutional because

The concept of equity pertains to the fairness of a tax.

Describe the U.S.Social Security system and explain how it is funded.

Figure 18-3 -In which panel of Figure 18-3 would an excise tax be borne entirely by the consumer?

In 2005,the median income of renters was $26,317 and the median income of homeowners was $50,505.If imputed rent were added to household income or rent became deductible,the personal income tax would become

The incidence of a tax refers to

Vertical equity refers to the notion that individuals at all levels should be taxed equally.

Figure 18-2 -Figure 18-2 shows the widget market before and after an excise tax is imposed.After the tax is imposed,the amount that a firm keeps for itself from the sale of each widget is ____.

The most important indirect taxes in the United States are

The Bush tax cuts of 2001

Figure 18-2 -Figure 18-2 shows the widget market before and after an excise tax is imposed.The revenue collected by the tax is ____.

Social Security payroll taxes are examples of

Economists generally think that the ____ tax is among the best ways to raise revenue.

Which of the following is exempt from taxation (a tax exemption)?

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

Federal personal income tax rates were

Are property taxes progressive or regressive?

Who bears the burden of an excise tax if demand is perfectly inelastic; if supply is perfectly inelastic? Use graphs in your explanation.

The average tax rate is

A regressive tax is one in which the average tax rate falls as income rises.