Question 1

What is the difference between a sales tax and an excise tax?

Accepted Answer

Sales taxes fall on a wide range of prod...

Question 2

If the taxes by state and local governments were combined with the federal tax system, the overall tax structure in the U.S. would best be characterized as

Accepted Answer

A)  progressive.
B)  highly regressive.
C)  slightly regressive.
D)  proportional.E) B) and D)
F) B) and C)

Question 3

What are the major expenditures of state governments? What are the major sources of tax revenue?

Accepted Answer

Education expenditures account for about...

Question 4

Discuss probable incidence of a local tax on business property.

Accepted Answer

Business property taxes are tr...

Question 5

If taxes are $2,000 when income is $15,000 and they are $3,000 when income is $19,000, then the marginal tax rate is

Accepted Answer

A)  20 percent.
B)  25 percent.
C)  30 percent.
D)  40 percent.E) All of the above
F) C) and D)

Question 6

Entry fees at national parks and monuments are an example of

Accepted Answer

A)  the ability-to-pay principle of taxation.
B)  the benefits-received principle of taxation.
C)  government bureaucracy and inefficiency.
D)  the principle of limited and bundled choice.E) B) and C)
F) A) and D)

Question 7

At the state and local levels of the U.S. government, a majority of government employees work in which of the following areas?

Accepted Answer

A)  postal service
B)  education
C)  hospitals and other health care
D)  police and correctionsE) A) and D)
F) B) and C)

Question 8

In 2018, "Tax-Freedom Day" (the day average workers have earned enough to pay their tax bills) was

Accepted Answer

A)  April 15.
B)  April 1.
C)  April 19.
D)  July 4.E) C) and D)
F) None of the above

Question 9

In 2016, the top 5 percent of income-tax filers paid what portion of the total U.S. federal income tax?

Accepted Answer

A)  close to 60 percent
B)  about 30 percent
C)  less than 20 percent
D)  more than 80 percentE) B) and D)
F) B) and C)

Question 10

(Advanced analysis) The equations for the demand and supply curves for a particular product are P = 10 − 0.4 Q and P = 2 + 0.4 Q, where P is price and Q is quantity expressed in units of 100. After an excise tax is imposed on the product, the supply equation is P = 3 + 0.4 Q. The equilibrium quantity before the excise tax is imposed is

Accepted Answer

A)  1,000 units.
B)  800 units.
C)  1,200 units.
D)  875 units.E) None of the above
F) A) and D)

Question 11

In the diagram, solid arrows reflect real flows, while broken arrows are monetary flows. Flow (3) might represent

Accepted Answer

A)  government salaries paid to schoolteachers.
B)  property tax payments.
C)  a state university's purchase of computers.
D)  social security payments to retirees.E) A) and B)
F) B) and D)

Question 12

Approximately what percentage of the federal government's tax revenues are generated from personal income taxes (in 2018) ?

Accepted Answer

A)  75 percent
B)  28 percent
C)  35 percent
D)  51 percentE) A) and D)
F) A) and C)

Question 13

The following are government activities that are involved in public finance, except

Accepted Answer

A)  providing public goods and services, such as national defense and education.
B)  running government-owned enterprises, such as hospitals, utilities, and lotteries
C)  redistributing income through various taxes and income-transfer payments,
D)  regulating the activities of firms in the financial sector of the economy,E) C) and D)
F) All of the above

Question 14

Overall, the U.S. tax system (combined federal, state, and local) is

Accepted Answer

A)  highly progressive.
B)  slightly progressive.
C)  slightly regressive.
D)  highly regressive.E) A) and B)
F) A) and C)

Question 15

Assume that in year 1 you pay an average tax rate of 25 percent on a taxable income of $50,000. In year 2, you pay an average tax rate of 30 percent on a taxable income of $75,000. Assuming no change in tax rates, the marginal tax rate on your additional $25,000 of income is

Accepted Answer

A)  13 percent.
B)  35 percent.
C)  40 percent.
D)  20 percent.E) C) and D)
F) None of the above

Question 16

In 2012, households in the top income quintile received about

Accepted Answer

A)  75 cents in government spending for every dollar they paid in taxes.
B)  60 cents in government spending for every dollar they paid in taxes.
C)  30 cents in government spending for every dollar they paid in taxes.
D)  10 cents in government spending for every dollar they paid in taxes.E) A) and B)
F) A) and C)

Question 17

Define public finance. What are the three sources of funding for governments?

Accepted Answer

Public finance is the subdiscipline of e...

Question 18

Refer to the personal income tax schedule given in the table. This tax is such that the after-tax distribution of income will be

Accepted Answer

A)  more equal than the before-tax distribution.
B)  less equal than the before-tax distribution.
C)  distributed in precisely the same way as the before-tax distribution.
D)  less than the before-tax distribution by the same percentage at each income level.E) B) and D)
F) All of the above

Question 19

Social Security contributions are part of

Accepted Answer

A)  excise taxes.
B)  payroll taxes.
C)  reverse taxes.
D)  indirect taxes.E) B) and C)
F) None of the above

Question 20

In 2016, U.S. governments (local, state, and federal) employed roughly what percentage of the U.S. labor force?

Accepted Answer

A)  5 percent
B)  14 percent
C)  42 percent
D)  64 percentE) A) and C)
F) A) and B)

Exam 20: Public Finance: Expenditures and Taxes

Correct Answer
verified

Entry fees at national parks and monuments are an example of

Correct Answer
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In 2016, U.S. governments (local, state, and federal) employed roughly what percentage of the U.S. labor force?

Correct Answer
verified

In 2018, "Tax-Freedom Day" (the day average workers have earned enough to pay their tax bills) was

Correct Answer
verified

Assume that in year 1 you pay an average tax rate of 25 percent on a taxable income of $50,000. In year 2, you pay an average tax rate of 30 percent on a taxable income of $75,000. Assuming no change in tax rates, the marginal tax rate on your additional $25,000 of income is

Correct Answer
verified

In 2012, households in the top income quintile received about

Correct Answer
verified

The following are government activities that are involved in public finance, except

Correct Answer
verified

If taxes are $2,000 when income is $15,000 and they are $3,000 when income is $19,000, then the marginal tax rate is

Correct Answer
verified

In 2016, the top 5 percent of income-tax filers paid what portion of the total U.S. federal income tax?

Correct Answer
verified

Discuss probable incidence of a local tax on business property.

Correct Answer
verified
Business property taxes are tr...
View Answer

Approximately what percentage of the federal government's tax revenues are generated from personal income taxes (in 2018) ?

Correct Answer
verified

Social Security contributions are part of

Correct Answer
verified

If the taxes by state and local governments were combined with the federal tax system, the overall tax structure in the U.S. would best be characterized as

Correct Answer
verified

What is the difference between a sales tax and an excise tax?

Correct Answer
verified
Sales taxes fall on a wide range of prod...
View Answer

Define public finance. What are the three sources of funding for governments?

Correct Answer
verified
Public finance is the subdiscipline of e...
View Answer

Refer to the personal income tax schedule given in the table. This tax is such that the after-tax distribution of income will be

Correct Answer
verified

Overall, the U.S. tax system (combined federal, state, and local) is

Correct Answer
verified

What are the major expenditures of state governments? What are the major sources of tax revenue?

Correct Answer
verified
Education expenditures account for about...
View Answer

At the state and local levels of the U.S. government, a majority of government employees work in which of the following areas?

Correct Answer
verified

In the diagram, solid arrows reflect real flows, while broken arrows are monetary flows. Flow (3) might represent

Correct Answer
verified

Exam 20: Public Finance: Expenditures and Taxes

Correct AnswerverifiedShow Answer

Entry fees at national parks and monuments are an example of

Correct AnswerverifiedShow Answer

In 2016, U.S. governments (local, state, and federal) employed roughly what percentage of the U.S. labor force?

Correct AnswerverifiedShow Answer

In 2018, "Tax-Freedom Day" (the day average workers have earned enough to pay their tax bills) was

Correct AnswerverifiedShow Answer

Assume that in year 1 you pay an average tax rate of 25 percent on a taxable income of $50,000. In year 2, you pay an average tax rate of 30 percent on a taxable income of $75,000. Assuming no change in tax rates, the marginal tax rate on your additional $25,000 of income is

Correct AnswerverifiedShow Answer

In 2012, households in the top income quintile received about

Correct AnswerverifiedShow Answer

The following are government activities that are involved in public finance, except

Correct AnswerverifiedShow Answer

If taxes are $2,000 when income is $15,000 and they are $3,000 when income is $19,000, then the marginal tax rate is

Correct AnswerverifiedShow Answer

In 2016, the top 5 percent of income-tax filers paid what portion of the total U.S. federal income tax?

Correct AnswerverifiedShow Answer

Discuss probable incidence of a local tax on business property.

Correct AnswerverifiedBusiness property taxes are tr...View AnswerShow Answer

Approximately what percentage of the federal government's tax revenues are generated from personal income taxes (in 2018) ?

Correct AnswerverifiedShow Answer

Social Security contributions are part of

Correct AnswerverifiedShow Answer

If the taxes by state and local governments were combined with the federal tax system, the overall tax structure in the U.S. would best be characterized as

Correct AnswerverifiedShow Answer

What is the difference between a sales tax and an excise tax?

Correct AnswerverifiedSales taxes fall on a wide range of prod...View AnswerShow Answer

Define public finance. What are the three sources of funding for governments?

Correct AnswerverifiedPublic finance is the subdiscipline of e...View AnswerShow Answer

Refer to the personal income tax schedule given in the table. This tax is such that the after-tax distribution of income will be

Correct AnswerverifiedShow Answer

Overall, the U.S. tax system (combined federal, state, and local) is

Correct AnswerverifiedShow Answer

What are the major expenditures of state governments? What are the major sources of tax revenue?

Correct AnswerverifiedEducation expenditures account for about...View AnswerShow Answer

At the state and local levels of the U.S. government, a majority of government employees work in which of the following areas?

Correct AnswerverifiedShow Answer

In the diagram, solid arrows reflect real flows, while broken arrows are monetary flows. Flow (3) might represent

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Business property taxes are tr...
View Answer

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
verified
Sales taxes fall on a wide range of prod...
View Answer

Correct Answer
verified
Public finance is the subdiscipline of e...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Education expenditures account for about...
View Answer

Correct Answer
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Correct Answer
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