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

Table 18-1 Suppose $1 billion is available in the budget and Congress is considering allocating the funds to one of the following three alternatives: 1) Subsidies for education, 2) Research on Alzheimer's or 3) Increased border security. Table 18-1 shows three voters' rankings of the alternatives. -Refer to Table 18-1.Suppose a series of votes are taken in which each pair of alternatives is considered in turn.If the vote is between allocating funds to subsidies for education and research on Alzheimer's

Last year,Anthony Millanti earned exactly $30,000 of taxable income.Assume that the income tax system used to determine Anthony's tax liability is progressive.The table below lists the tax brackets and the marginal tax rates that apply to each bracket. a. Draw a new table that lists the amounts of income tax that Anthony is obligated to pay for each tax bracket,and the total tax he owes the government.(Assume that there are no allowable tax deductions,tax credits,personal exemptions or any other deductions that Anthony can use to reduce his tax liability). b.Determine Anthony's average tax rate.

Many state governments use lotteries to raise revenue.If a lottery is viewed as a tax,is it most likely a progressive tax or a regressive tax? What information would you need to determine whether the burden of a lottery is progressive or regressive?

Holding all other factors constant,income earned from capital is more unequally distributed than income earned from labor.

Most economists agree that some of the burden of the corporate income tax

Table 18-7 Table 18-7 shows the amount of taxes paid on various levels of income. -Refer to Table 18-7.The tax system is

Figure 18-1 -Refer to Figure 18-1.The sales tax revenue collected by the government is represented by the area

The public choice model assumes that government policy makers

What is meant by "tax incidence"?

The decision to make the U.S.income tax system progressive was

Both presidents Kennedy and Reagan proposed significant cuts in income taxes because

Table 18-1 Suppose $1 billion is available in the budget and Congress is considering allocating the funds to one of the following three alternatives: 1) Subsidies for education, 2) Research on Alzheimer's or 3) Increased border security. Table 18-1 shows three voters' rankings of the alternatives. -Refer to Table 18-1.Suppose a series of votes are taken in which each pair of alternatives is considered in turn.If the vote is between allocating funds to research on Alzheimer's and increased border security

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

Which of the following is a transfer payment?

Economists caution that conventional statistics used to estimate the extent of poverty in the United States fail to account for benefits people receive that,if considered,would reduce the amount of poverty.Which of the following is an example of these benefits?

In 2012,over 75 percent of the revenue of the U.S.federal government was raised through

An example of a payroll tax in the United States is

An average tax rate is calculated as

Logrolling may result in

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,what is the size of the deadweight loss,if there is any?