Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter 22, Problem 6SQ
To determine
The regressive
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Students have asked these similar questions
A government replaces progressive taxes with regressive taxes. What is the likely outcome?
a. Distribution of Income more even; Marginal Tax Rate decrease
b. Distribution of Income more uneven; Marginal Tax Rate increase
c. Distribution of Income more uneven; Marginal Tax Rate decrease
d. Distribution of Income more even; Marginal Tax Rate increase
A proportional tax is a tax for which people with lower incomes
Group of answer choices
A. pay a higher percentage of their incomes in tax than do people with higher incomes.
B. pay a lower percentage of their incomes in tax than do people with higher incomes.
C. pay the same percentage of their incomes in tax as do people with higher incomes.
D. pay the same amount of taxes as people with higher incomes pay.
When government increases a fixed tax, consumption schedule
a.
shifts downward in a parallel manner.
b.
shifts upward in a parallel manner.
c.
becomes vertical.
d.
becomes horizontal.
Chapter 22 Solutions
Economics For Today
Ch. 22.4 - Prob. 1YTECh. 22 - Prob. 1SQPCh. 22 - Prob. 2SQPCh. 22 - Prob. 3SQPCh. 22 - Prob. 4SQPCh. 22 - Prob. 5SQPCh. 22 - Explain why a 5 percent sales tax on gasoline is...Ch. 22 - Prob. 7SQPCh. 22 - Prob. 8SQPCh. 22 - Prob. 9SQP
Ch. 22 - Prob. 10SQPCh. 22 - Prob. 11SQPCh. 22 - Prob. 1SQCh. 22 - Prob. 2SQCh. 22 - Prob. 3SQCh. 22 - Prob. 4SQCh. 22 - Prob. 5SQCh. 22 - Prob. 6SQCh. 22 - Prob. 7SQCh. 22 - Prob. 8SQCh. 22 - Prob. 9SQCh. 22 - Prob. 10SQCh. 22 - Prob. 11SQCh. 22 - Prob. 12SQCh. 22 - Prob. 13SQCh. 22 - Prob. 14SQCh. 22 - Prob. 15SQCh. 22 - Prob. 16SQCh. 22 - Prob. 17SQCh. 22 - Prob. 18SQCh. 22 - Prob. 19SQCh. 22 - Prob. 20SQ
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- Excise taxes on tobacco and alcohol and state sales taxes are often criticized for being regressive. Although everyone pays the same rate regardless of Income, why might this be so?arrow_forwardQuestion 4 A tax that takes a smaller percentage of an individual's income as their income rises is called a a. proportional tax c. head tax O d. regressive taxarrow_forward9.which flows represent taxes? a. C and D b. E and F c. A and B d. D and Earrow_forward
- The following table shows tax payments made for various incomes. According to the information in the table below, the tax system is: Table 3.1 Taxable income $1,000 $2,000 $4,000 $8,000 Тах рayments $10 $30 $90 $270 a. regressive between $1,000 and $2,000 of income but progressive above $2,000. b. progressive throughout all levels of income. c. regressive throughout all levels of income. O d. progressive between $1,000 and $2,000 of income but regressive above $2,000. O e. proportional throughout all levels of income.arrow_forwardAn indirect tax is: A. a tax on goods and services that we purchase B. a tax with your name on it C. a tax that increases as your income increases D. All of the Abovearrow_forwardIncome tax is a a. Local tax b. Special tax c. Tax on persons d. Regressive tax e. None of the abovearrow_forward
- Define individual income tax. A. Individual income tax is the tax an individual pays to the government based on their income from wages.B. Individual income tax is a tax levied on corporations.C. Individual income tax is a tax levied on the value of property or land.D. Individual income tax is a tax paid on a specific product. The producer often passes the cost of the tax to the consumer.arrow_forward5. Allocation of government expenditures Federal and local governments tax and spend. The following pie charts show the allocation of federal and local government expenditures in 2016. Interest 11% Federal All other 12% Health 30% O True O False Pensions and Income Security 33% National Defense 14% Highways 6.0% State and Local All other 31% Education 33% Health and Public Welfare (includes health and welfare and social services, not disability) 30% (Source: Bureau of Economic Analysis, "Government Current Expenditures by Function," National Income and Product Accounts Tables, www.bea.gov.) True or False: You can validly conclude from these pie charts that local governments do not spend enough on highways.arrow_forwardAssume a state's general sales tax is 6%; this is an example of a _______________ income tax. A. Progressive B. Proportional C. Regressivearrow_forward
- What is the effect of government purchased and taxation on the level of income?arrow_forwardComplete the table and answer the following questions. After-Tax Before-Tax Income Tax Rate Tax Paid Income High-Income Family $500,000 39.6% Middle-Income Family 50,000 20% Low-Income Family 20,000 10% Using the table, the ratio of a high-income family's to a low-income family's a. before-tax income is: to 1 b. after-tax income is: to 1 c. Is this tax progressive?arrow_forward1st statement – The Legislative Department levies the taxes.2nd statement – The Executive Department, through the Department of Finance’s line agency, the Bureau of Internal Revenue makes the assessment and collection of internal revenue taxes. a. Only the 1st statement is trueb. Only the 2nd statement is truec. Both statements are trued. Both statements are falsearrow_forward
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