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

The Center for Science in the Public Interest claims that an 8-cent tax on a 12-ounce serving of soda would raise ________ per year.

Consider a public good such as fire protection services.Rich people may benefit more than the poor from such a service because rich people stand to lose more from a fire that destroys property.In this case,

The actual division of the burden of a tax is called

If you pay $2,000 in taxes on an income of $20,000,and a tax of $3,000 on an income of $30,000,then over this range of income the tax is

The median voter model implies that

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

A tax bracket is

If the marginal tax rate is less than the average tax rate as taxable income increases,the tax structure is

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,the government's revenue from the tax is represented by the area

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,the producer's burden of the tax

If the Gini coefficient for Cartland is 1,it means that income distribution is perfectly equal in this society.

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 Islandia.

Consider the following methods of taxing a corporation's income: a.A flat tax,as opposed to a progressive tax,is levied on corporate profits. B)A system whereby a corporation calculates its annual profit and notifies each shareholder of her portion of the profits.The shareholder would then be required to include this amount as taxable income for her personal income tax.The corporation does not pay a tax. C)A system where the federal government continues to tax corporate income through the corporate income tax but allows individual taxpayers to receive,tax free,corporate dividends and capital gains. Which of the methods above would avoid double taxation? A) a, b, and c B) a and b only C) a and c only D) b and c only

Figure 18-6 -Refer to Figure 18-6 to answer the following questions. a.Did the distribution of income become more equal in 2010 that it was in 2009,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 2009 and the Gini coefficient for 2010.