Question 1

The notion that similar taxpayers should pay similar amounts of taxes is known as

Accepted Answer

A)  vertical equity.
B)  the benefits principle.
C)  horizontal equity.
D)  taxpayer efficiency.E) A) and D)
F) B) and C)

Question 2

Table 12-10 
-Refer to Table 12-10. If Jace has $33,000 in taxable income, his tax liability will be

Accepted Answer

A)  $4,531.
B)  $4,678.
C)  $4,950.
D)  $8,269.E) A) and B)
F) All of the above

Question 3

A person's average tax rate equals her

Accepted Answer

A)  tax obligation divided by her marginal tax rate.
B)  increase in taxes if her income were to rise by $1.
C)  tax obligation divided by her income.
D)  increase in taxes if her marginal tax rate were to rise 1percent.E) A) and D)
F) A) and C)

Question 4

Which tax system requires all taxpayers to pay the same percentage of their income in taxes?

Accepted Answer

A)  a regressive tax
B)  a proportional tax
C)  a progressive tax
D)  a horizontal equity taxE) None of the above
F) A) and D)

Question 5

Table 12-9
United States Income Tax Rates for a Single Individual, 2012 and 2013. 
-Refer to Table 12-9. Harry is a single person whose taxable income is $35,000 a year. What is his marginal tax rate in 2012?

Accepted Answer

A)  15%
B)  28%
C)  31%
D)  36%E) None of the above
F) A) and B)

Question 6

If all taxpayers pay the same percentage of income in taxes, the tax system is progressive.

Accepted Answer

A) True 
 B)False

Question 7

When the government taxes labor earnings we can expect people to

Accepted Answer

A)  work more so they can keep the same standard of living.
B)  work less and enjoy more leisure.
C)  quit their present job and find one that pays better.
D)  stop working altogether and go on welfare.E) C) and D)
F) A) and C)

Question 8

Scenario 12-3
Suppose Roger and Regina receive great satisfaction from their consumption of cheesecake. Regina would be willing to purchase only one slice and would pay up to $8 for it. Roger would be willing to pay $11 for his first slice, $9 for his second slice, and $5 for his third slice. The current market price is $5 per slice.
-Refer to Scenario 12-3. How much total consumer surplus do Regina and Roger collectively receive from consuming cheesecake?

Accepted Answer

A)  $3
B)  $6
C)  $9
D)  $13E) A) and B)
F) B) and C)

Question 9

Use Table A to complete Table B.

Accepted Answer

The answer of Use Table A to complete Table B....

Question 10

Individual income taxes and social insurance taxes generate the highest tax revenue for the federal government.

Accepted Answer

A) True 
 B)False

Question 11

If your income is $40,000 and your income tax liability is $5,000, your

Accepted Answer

A)  marginal tax rate is 8 percent.
B)  average tax rate is 8 percent.
C)  marginal tax rate is 12.5 percent.
D)  average tax rate is 12.5 percent.E) A) and B)
F) A) and C)

Question 12

What is the most efficient tax and why?

Accepted Answer

A lump-sum tax is the most eff...

Question 13

Under a regressive tax system, the marginal tax rate for high income taxpayers is

Accepted Answer

A)  higher than the marginal tax rate for low income taxpayers.
B)  the same as the marginal tax rate for low income taxpayers.
C)  lower than the marginal tax rate for low income taxpayers.
D)  Any of the above could be true under a regressive tax system.E) A) and B)
F) B) and D)

Question 14

If a poor family has three children in public school and a rich family has two children in private school, the benefits principle would suggest that

Accepted Answer

A)  the poor family should pay more in taxes to pay for public education than the rich family.
B)  the rich family should pay more in taxes to pay for public education than the poor family.
C)  the benefits of private school exceed those of public school.
D)  public schools should be financed by property taxes.E) A) and B)
F) All of the above

Question 15

Suppose the government taxes 10 percent of the first $30,000 in income, 20 percent of the next $20,000 in income, and 30 percent of all income over $50,000. Calculate the marginal tax rate and the average tax rate for a person who earns $70,000.

Accepted Answer

The marginal tax rate would be 30 percen...

Question 16

What is the current, annual, approximate amount per person paid to the federal government in individual income taxes, social insurance taxes, corporate income taxes, and other taxes?

Accepted Answer

a little m...

Question 17

​The largest source of federal revenue in the United States is:

Accepted Answer

A)  ​Social insurance tax
B)  the corporate income tax
C)  ​the individual income tax
D)  Foreign aid to the U.S.E) C) and D)
F) B) and C)

Question 18

Table 12-10 
-Refer to Table 12-10. If Jace has $33,000 in taxable income, his average tax rate is

Accepted Answer

A)  13.7%.
B)  14.6%.
C)  15.0%.
D)  15.2%.E) A) and D)
F) All of the above

Question 19

A tax system based on the ability-to-pay principle claims that all citizens should

Accepted Answer

A)  pay taxes based on the benefits they receive from government services.
B)  pay the same amount in taxes.
C)  pay taxes based on consumption rather than income.
D)  make an equal sacrifice.E) B) and D)
F) B) and C)

Question 20

The flypaper theory of tax incidence

Accepted Answer

A)  ignores the indirect effects of taxes.
B)  assumes that most taxes should be "stuck on " the rich.
C)  says that once a tax has been imposed, there is little chance of it changing, so in essence people are stuck with it.
D)  suggests that taxes are like flies because they are everywhere and will never go away.E) A) and B)
F) C) and D)

Exam 12: The Design of the Tax System

A tax system based on the ability-to-pay principle claims that all citizens should

Correct Answer
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Correct Answer
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Table 12-10 -Refer to Table 12-10. If Jace has $33,000 in taxable income, his average tax rate is

Correct Answer
verified

The largest source of federal revenue in the United States is:

Correct Answer
verified

Which tax system requires all taxpayers to pay the same percentage of their income in taxes?

Correct Answer
verified

Individual income taxes and social insurance taxes generate the highest tax revenue for the federal government.

Correct Answer
verified

Use Table A to complete Table B.

Correct Answer
verified

Under a regressive tax system, the marginal tax rate for high income taxpayers is

Correct Answer
verified

A person's average tax rate equals her

Correct Answer
verified

What is the current, annual, approximate amount per person paid to the federal government in individual income taxes, social insurance taxes, corporate income taxes, and other taxes?

Correct Answer
verified
a little m...
View Answer

Table 12-10 -Refer to Table 12-10. If Jace has $33,000 in taxable income, his tax liability will be

Correct Answer
verified

Table 12-9 United States Income Tax Rates for a Single Individual, 2012 and 2013. -Refer to Table 12-9. Harry is a single person whose taxable income is $35,000 a year. What is his marginal tax rate in 2012?

Correct Answer
verified

When the government taxes labor earnings we can expect people to

Correct Answer
verified

If a poor family has three children in public school and a rich family has two children in private school, the benefits principle would suggest that

Correct Answer
verified

Suppose the government taxes 10 percent of the first $30,000 in income, 20 percent of the next $20,000 in income, and 30 percent of all income over $50,000. Calculate the marginal tax rate and the average tax rate for a person who earns $70,000.

Correct Answer
verified
The marginal tax rate would be 30 percen...
View Answer

The flypaper theory of tax incidence

Correct Answer
verified

If all taxpayers pay the same percentage of income in taxes, the tax system is progressive.

Correct Answer
verified

The notion that similar taxpayers should pay similar amounts of taxes is known as

Correct Answer
verified

What is the most efficient tax and why?

Correct Answer
verified
A lump-sum tax is the most eff...
View Answer

If your income is $40,000 and your income tax liability is $5,000, your

Correct Answer
verified

Exam 12: The Design of the Tax System

A tax system based on the ability-to-pay principle claims that all citizens should

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Table 12-10 -Refer to Table 12-10. If Jace has $33,000 in taxable income, his average tax rate is

Correct AnswerverifiedShow Answer

​The largest source of federal revenue in the United States is:

Correct AnswerverifiedShow Answer

Which tax system requires all taxpayers to pay the same percentage of their income in taxes?

Correct AnswerverifiedShow Answer

Individual income taxes and social insurance taxes generate the highest tax revenue for the federal government.

Correct AnswerverifiedShow Answer

Use Table A to complete Table B.

Correct AnswerverifiedShow Answer

Under a regressive tax system, the marginal tax rate for high income taxpayers is

Correct AnswerverifiedShow Answer

A person's average tax rate equals her

Correct AnswerverifiedShow Answer

What is the current, annual, approximate amount per person paid to the federal government in individual income taxes, social insurance taxes, corporate income taxes, and other taxes?

Correct Answerverifieda little m...View AnswerShow Answer

Table 12-10 -Refer to Table 12-10. If Jace has $33,000 in taxable income, his tax liability will be

Correct AnswerverifiedShow Answer

Table 12-9 United States Income Tax Rates for a Single Individual, 2012 and 2013. -Refer to Table 12-9. Harry is a single person whose taxable income is $35,000 a year. What is his marginal tax rate in 2012?

Correct AnswerverifiedShow Answer

When the government taxes labor earnings we can expect people to

Correct AnswerverifiedShow Answer

If a poor family has three children in public school and a rich family has two children in private school, the benefits principle would suggest that

Correct AnswerverifiedShow Answer

Suppose the government taxes 10 percent of the first $30,000 in income, 20 percent of the next $20,000 in income, and 30 percent of all income over $50,000. Calculate the marginal tax rate and the average tax rate for a person who earns $70,000.

Correct AnswerverifiedThe marginal tax rate would be 30 percen...View AnswerShow Answer

The flypaper theory of tax incidence

Correct AnswerverifiedShow Answer

If all taxpayers pay the same percentage of income in taxes, the tax system is progressive.

Correct AnswerverifiedShow Answer

The notion that similar taxpayers should pay similar amounts of taxes is known as

Correct AnswerverifiedShow Answer

What is the most efficient tax and why?

Correct AnswerverifiedA lump-sum tax is the most eff...View AnswerShow Answer

If your income is $40,000 and your income tax liability is $5,000, your

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
verified

Correct Answer
verified

The largest source of federal revenue in the United States is:

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a little m...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The marginal tax rate would be 30 percen...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A lump-sum tax is the most eff...
View Answer

Correct Answer
verified