Exam 10: The Public Sector

Suppose the income tax rate is 0 on the first $20,000,20 percent on the next $20,000,30 percent on the next $20,000,40 percent on the next $20,000,and 50 percent on all income over that.The Arm family has a taxable income of $80,000.The average tax rate for this family is ________%.

A consumption tax would

Which of the following does NOT involve transfers in kind?

The marginal tax rate applies to

A tax system characterized by a constant average tax rate is known as a

Suppose the tax rate on the first $10,000 of income is zero;10% on the next $20,000;20% on the next $20,000;30% on the next $20,000;and 40% on income over $70,000.Family C has an income of $100,000.What is family C's average tax rate?

Grants to support needy students are an example of

A family making $30,000 pays $4,500 in taxes and a family making $40,000 pays $6,500 in taxes.The tax system is

Public goods are not likely to be provided by the private sector because

The idea behind a progressive tax system is that it is fair that

A family making $30,000 pays $4,500 in taxes and a family making $40,000 pays $5,500 in taxes.The tax system is

Suppose you purchased 100 shares of stock in 1990 for $25 a share,and you sell them today for $50 a share.If the capital gains tax is 28 percent,your tax liability is

The tax rate in the highest income tax bracket reached by a taxpayer is the

Suppose the tax rate on the first $10,000 of income is zero;it is 10% on the next $20,000;20% on the next $20,000;30% on the next $20,000;and 40% on income over $70,000.Family A has an income of $120,000 and Family B an income of $55,000.What is the tax bill of each?

Suppose the income tax rate schedule is 0% on the first $10,000;10% on the next $20,000;20% on the next $20,000;30% on the next $20,000;and 40% on any income over $70,000.Dennis,who has been earning $28,000 a year,receives a ten percent raise.The additional tax he will he have to pay is $________.

The government tries to protect the benefits from a competitive economic system by passing and enforcing

Describe the 3 types of tax systems.Discuss the fairness and the feasibility of Canada's moving to a proportional tax system as is occasionally suggested.

Transfer payments are payments

The marginal tax rate shows

Which of the following is a demerit good?