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

Figure 18-5 Figure 18-5 shows the Lorenz curves for Islandia and Syldavia. -Refer to Figure 18-5.If area X = 2,060,area Y = 240,and area Z= 2,700,calculate the Gini coefficient for Syldavia.

Figure 18-1 -Refer to Figure 18-1.Of the tax revenue collected by the government,the portion borne by producers is represented by the area

The corporate income tax is ultimately paid by all of the following except

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?

What are the two types of taxes that working individuals pay on their earnings?

All of the following occur whenever a government taxes a product except

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,

Tax laws affect

Figure 18-4 Figure 18-4 shows the Lorenz curve for a hypothetical country. -Refer to Figure 18-4.The highest 20 percent of households

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

Which of the following statements about rent seeking is false?

The "ability-to-pay" principle of taxation is the normative idea that

If,as your taxable income decreases,you pay a smaller percentage of your taxable income in taxes,then the tax is

Describe each of the principles governments consider when deciding which taxes to use.

Which of the following is not an example of rent seeking behavior?

One argument advanced in favor of raising the tax on dividends is that

Describe the main factors economists believe cause inequality of income.

The sales tax

Figure 18-1 -Refer to Figure 18-1.Of the tax revenue collected by the government,the portion borne by consumers is represented by the area

As the value of the Gini coefficient approaches zero,