Exam 16: The Distribution of Income and Social Policy

A proportional tax is a tax for which people with lower incomes

Policymakers focus on marginal tax rate changes when making changes in the tax code because the marginal tax rate

A Lorenz curve summarises the information provided by a Gini coefficient.

Figure 16-1 -Refer to Figure 16-1.Area F + G represents

If grocery stores were legally required to charge a 10-cent fee for disposable grocery bags,who would bear the largest burden of this fee?

The marginal tax rate is

What does a Lorenz curve illustrate?

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

If the government wants to minimise the welfare loss of a tax,it should tax goods with more inelastic demands or supplies.

The poverty rate is defined as the percentage of the

Figure 16-1 -Refer to Figure 16-1.Of the tax revenue collected by the government,the portion borne by consumers is represented by the area

Figure 16-1 -Refer to Figure 16-1.Area B + C + F + G represents

A statistical tool used to measure inequality is

According to the horizontal-equity principle of taxation,

Figure 16-1 -Refer to Figure 16-1.The excess burden of the tax is represented by the area

'Sin taxes,' such as taxes on alcoholic beverages,are intended to

For a given supply curve,the deadweight loss from the imposition of a tax is smaller if demand is more elastic.

A marginal tax rate is

Figure 16-1 -Refer to Figure 16-1.Area E + H represents

Figure 16-2 Figure 16-2 shows a demand curve and two sets of supply curves,one set more elastic than the other. -Refer to Figure 16-2.If the government imposes an excise tax of $1.00 on every unit sold,the government's revenue from the tax