Question 1

Other things being equal, the burden of a sales tax on a product will be borne entirely by the producer if

Accepted Answer

A)   demand is perfectly elastic.
B)   supply is perfectly elastic.
C)   supply and demand have the same price elasticity.
D)   demand is perfectly inelastic.E) B) and C)
F) A) and D)

Question 2

Government lotteries are

Accepted Answer

A)   used by a large number of states to supplement their tax revenues.
B)   illegal in the United States but are a common source of revenue in other countries.
C)   used by local governments but not by state governments.
D)   a form of progressive taxation.E) C) and D)
F) B) and D)

Question 3

In 2015, corporate income taxes contributed about what percentage of U.S. federal tax revenues?

Accepted Answer

A)   10 percent
B)   25 percent
C)   50 percent
D)   70 percentE) None of the above
F) C) and D)

Question 4

If the demand for a product is perfectly elastic and supply is upsloping, a $1 excise tax per unit on suppliers will

Accepted Answer

A)   not raise price at all.
B)   lower price by $1.
C)   raise price by more than $1.
D)   raise price by $1.E) A) and B)
F) A) and C)

Question 5

Assume the demand for automobile tires is highly inelastic and that the supply is highly elastic. The burden of a $2 excise tax on each tire will be

Accepted Answer

A)   borne by resource suppliers that provide the inputs for manufacturing tires.
B)   shared about equally by buyers and sellers of tires.
C)   borne primarily by buyers of tires.
D)   borne primarily by sellers of tires.E) A) and B)
F) A) and D)

Question 6

Assume the Environmental Protection Agency imposes an excise tax on polluting firms. In which of the following situations would we expect the additional costs to be borne most heavily by consumers?

Accepted Answer

A)   Demand is highly elastic and supply is highly inelastic.
B)   Demand and supply are both highly elastic.
C)   Demand and supply are both highly inelastic.
D)   Demand is highly inelastic and supply is highly elastic.E) None of the above
F) A) and B)

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

With a tax of $4,000 on $20,000 of income and $6,000 on $30,000 of income, the average tax rate is

Accepted Answer

A)   constant at 10 percent.
B)   lower than the marginal tax rate.
C)   equal to the marginal tax rate.
D)   higher than the marginal tax rate, which is equal to zero.E) A) and B)
F) A) and C)

Question 9

The benefits-received principle of taxation is most evident in

Accepted Answer

A)   inheritance taxes.
B)   excise taxes on gasoline.
C)   the personal income tax.
D)   the corporate income tax.E) B) and D)
F) None of the above

Question 10

The basic source of state government's revenue is the property tax.

Accepted Answer

A) True 
 B)False

Question 11

In 2013, 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) A) and B)
F) A) and C)

Question 12

The two largest sources of tax revenue for the U.S. federal government are

Accepted Answer

A)   excise taxes and customs duties.
B)   payroll taxes and excise taxes.
C)   personal income taxes and payroll taxes.
D)   personal income taxes and corporate income taxes.E) C) and D)
F) A) and B)

Exam 20: Public Finance: Expenditures and Taxes

Assume the demand for automobile tires is highly inelastic and that the supply is highly elastic. The burden of a $2 excise tax on each tire will be

Correct Answer
verified

The basic source of state government's revenue is the property tax.

Correct Answer
verified

The two largest sources of tax revenue for the U.S. federal government are

Correct Answer
verified

If the demand for a product is perfectly elastic and supply is upsloping, a $1 excise tax per unit on suppliers will

Correct Answer
verified

In 2015, corporate income taxes contributed about what percentage of U.S. federal tax revenues?

Correct Answer
verified

With a tax of $4,000 on $20,000 of income and $6,000 on $30,000 of income, the average tax rate is

Correct Answer
verified

In 2013, the top 5 percent of income-tax filers paid what portion of the total U.S. federal income tax?

Correct Answer
verified

Government lotteries are

Correct Answer
verified

The benefits-received principle of taxation is most evident in

Correct Answer
verified

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

Correct Answer
verified

Assume the Environmental Protection Agency imposes an excise tax on polluting firms. In which of the following situations would we expect the additional costs to be borne most heavily by consumers?

Correct Answer
verified

Other things being equal, the burden of a sales tax on a product will be borne entirely by the producer if

Correct Answer
verified

Exam 20: Public Finance: Expenditures and Taxes

Assume the demand for automobile tires is highly inelastic and that the supply is highly elastic. The burden of a $2 excise tax on each tire will be

Correct AnswerverifiedShow Answer

The basic source of state government's revenue is the property tax.

Correct AnswerverifiedShow Answer

The two largest sources of tax revenue for the U.S. federal government are

Correct AnswerverifiedShow Answer

If the demand for a product is perfectly elastic and supply is upsloping, a $1 excise tax per unit on suppliers will

Correct AnswerverifiedShow Answer

In 2015, corporate income taxes contributed about what percentage of U.S. federal tax revenues?

Correct AnswerverifiedShow Answer

With a tax of $4,000 on $20,000 of income and $6,000 on $30,000 of income, the average tax rate is

Correct AnswerverifiedShow Answer

In 2013, the top 5 percent of income-tax filers paid what portion of the total U.S. federal income tax?

Correct AnswerverifiedShow Answer

Government lotteries are

Correct AnswerverifiedShow Answer

The benefits-received principle of taxation is most evident in

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Assume the Environmental Protection Agency imposes an excise tax on polluting firms. In which of the following situations would we expect the additional costs to be borne most heavily by consumers?

Correct AnswerverifiedShow Answer

Other things being equal, the burden of a sales tax on a product will be borne entirely by the producer if

Correct AnswerverifiedShow Answer

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