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

An income tax system is ________ if marginal tax rates increase as income increases.

The median voter theorem will be an accurate predicator of the outcomes of elections

The median voter model implies that

There is a difference between who is legally required to send a tax payment to the government and who bears the burden of the tax.Which of the following would have the most impact on who bears the burden of an excise tax?

U.S.taxpayers spend many hours during the year maintaining records for tax purposes and preparing their income tax returns.This administrative cost

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

Table 18-6 Table 18-6 shows the income tax brackets and tax rates for single taxpayers in Calpernia. -Refer to Table 18-6.Sasha is a single taxpayer with an income of $60,000.What is his marginal tax rate and what is his average tax rate?

Which of the following tax systems would help reduce income inequality the most?

The marginal tax rate is

Figure 18-3 -Refer to Figure 18-3.The figure above shows a demand curve and two supply curves,one more elastic than the other.Use Figure 18-3 to answer the following questions. a.Suppose the government imposes an excise tax of $1.00 on every unit sold.Use the graph to illustrate the impact of this tax. b.If the government imposes an excise tax of $1.00 on every unit sold,will the consumer pay more of the tax if the supply curve is S₁ or S₂? Refer to the graphs in your answer. c.If an excise tax of $1.00 on every unit sold is imposed,will the revenue collected by the government be greater if the supply curve is S₁ or S₂? d.If the government imposes an excise tax of $1.00 on every unit sold,will the deadweight loss be greater if the supply curve is S₁ or S₂?

Refer to the Article Summary.Suppose the sale of marijuana is legalized in Florida,and the state decides to charge a tax of $50 per ounce on each sale,with the state claiming that retailers will bear the entire burden of this tax.Draw a graph illustrating the situation where retail outlets would bear the entire tax burden of $50 per ounce of marijuana.Explain what would need to be true about the demand for marijuana for retailers to bear the entire burden of this tax,and if this would likely occur if marijuana sales were legalized.

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

A marginal tax rate is calculated as

Table 18-8 Table 18-8 shows the amount of taxes paid on various levels of income. -Refer to Table 18-8.The tax system is

Table 18-9 Table 18-9 shows the income tax brackets and tax rates for single taxpayers in Monrovia. -Refer to Table 18-9.Sylvia is a single taxpayer with an income of $70,000.What is her marginal tax rate and what is her average tax rate?

In the United States

Rent seeking behavior,unlike profit maximizing behavior in competitive markets,wastes society's scarce resources.

Horizontal equity means that two people in identical economic situations should pay the same amount of taxes.

Some economists who use the public choice model to explain the ways government intervenes in the economy believe that regulatory capture results when an agency or commission is given authority over a particular industry or product.Which of the following is the best example of regulatory capture?