Question 1

Given supply, the more inelastic the demand for a product, the larger the portion of an excise tax that is shifted to consumers.

Accepted Answer

A) True 
 B)False

Question 2

Corporate income taxes contribute more to federal tax revenues than do personal income taxes.

Accepted Answer

A) True 
 B)False

Question 3

The state and local tax structure is largely progressive.

Accepted Answer

A) True 
 B)False

Question 4

The federal personal income tax

Accepted Answer

A)  has a regressive structure.
B)  is actually less progressive than official tax schedules would indicate because of various tax exemptions and deductions.
C)  has become extremely progressive as a result of taxpayers' being pushed into higher tax brackets by higher income levels.
D)  has experienced substantial increases in rates during the past two years.E) A) and D)
F) B) and C)

Question 5

The efficiency loss of a tax is

Accepted Answer

A)  the net value of sacrificed output caused by the tax.
B)  that portion of the tax paid by producers minus the portion paid by consumers.
C)  that portion of the tax paid by consumers minus the portion paid by producers.
D)  the total tax revenue minus the output loss caused by the tax.E) A) and D)
F) B) and D)

Question 6

Which of the following is the most important source of tax revenue for state governments?

Accepted Answer

A)  personal income tax
B)  property taxes
C)  sales and excise taxes
D)  corporate income taxE) B) and D)
F) B) and C)

Question 7

The property tax may be regressive even though wealthy people own much more taxable property than do poor people.This possibility arises because

Accepted Answer

A)  marginal and average tax rates on property tend to converge.
B)  wealthy people can evade property taxes, while poor people cannot.
C)  property taxes on rental property and business property are shifted.
D)  statutory property tax rates decline as the value of property rises.E) A) and C)
F) A) and D)

Question 8

"Deficit spending" refers to a situation where the government

Accepted Answer

A)  spends borrowed funds.
B)  collects more tax revenues than it spends.
C)  does not need to borrow funds.
D)  is spending less than the year before.E) A) and D)
F) B) and C)

Question 9

If a tax is progressive, then

Accepted Answer

A)  the average and marginal tax rates are always equal.
B)  as the tax base increases, the marginal tax rate declines.
C)  as the tax base rises, the average tax rate is greater than the marginal tax rate.
D)  as the tax base increases, the marginal tax rate is greater than the average tax rate.E) B) and D)
F) B) and C)

Question 10

Which of the following is an exhaustive governmental outlay?

Accepted Answer

A)  a federal $5,000 subsidy check to an Illinois farmer
B)  a Temporary Assistance to Needy Families payment made by the state of New York
C)  a NASA payment to Boeing Corporation for space hardware
D)  a federal old age insurance payment to a retired coal minerE) C) and D)
F) B) and D)

Exam 20: Public Finance: Expenditures and Taxes

Which of the following is an exhaustive governmental outlay?

Correct Answer
verified

Given supply, the more inelastic the demand for a product, the larger the portion of an excise tax that is shifted to consumers.

Correct Answer
verified

The state and local tax structure is largely progressive.

Correct Answer
verified

Which of the following is the most important source of tax revenue for state governments?

Correct Answer
verified

"Deficit spending" refers to a situation where the government

Correct Answer
verified

The efficiency loss of a tax is

Correct Answer
verified

The federal personal income tax

Correct Answer
verified

The property tax may be regressive even though wealthy people own much more taxable property than do poor people.This possibility arises because

Correct Answer
verified

If a tax is progressive, then

Correct Answer
verified

Corporate income taxes contribute more to federal tax revenues than do personal income taxes.

Correct Answer
verified

Exam 20: Public Finance: Expenditures and Taxes

Which of the following is an exhaustive governmental outlay?

Correct AnswerverifiedShow Answer

Given supply, the more inelastic the demand for a product, the larger the portion of an excise tax that is shifted to consumers.

Correct AnswerverifiedShow Answer

The state and local tax structure is largely progressive.

Correct AnswerverifiedShow Answer

Which of the following is the most important source of tax revenue for state governments?

Correct AnswerverifiedShow Answer

"Deficit spending" refers to a situation where the government

Correct AnswerverifiedShow Answer

The efficiency loss of a tax is

Correct AnswerverifiedShow Answer

The federal personal income tax

Correct AnswerverifiedShow Answer

The property tax may be regressive even though wealthy people own much more taxable property than do poor people.This possibility arises because

Correct AnswerverifiedShow Answer

If a tax is progressive, then

Correct AnswerverifiedShow Answer

Corporate income taxes contribute more to federal tax revenues than do personal income taxes.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

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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