Question 1

Define the deadweight loss of a tax.

Accepted Answer

The answer of Define the deadweight loss of a tax....

Question 2

What are the characteristic(s) of an efficient tax system?

Accepted Answer

The answer of What are the characteristic(s) of an efficient...

Question 3

Briefly describe why taxes create deadweight loss.

Accepted Answer

The answer of Briefly describe why taxes create deadweight loss....

Question 4

"Income security" programs comprised 33 percent of the federal government's spending in 2011. Give a few examples of the programs included in this category.

Accepted Answer

The answer of "Income security" programs comprised 33 percent of...

Question 5

Suppose that Deon places a $150 value on a new MP-3 player, and Juanita places a $140 value on it. The cost of the MP-3 player is $130. Suppose the government levies a $15 tax on MP-3 players, which raises the price to $145. What is the deadweight loss created by the tax?

Accepted Answer

The answer of Suppose that Deon places a $150 value...

Question 6

What are the two main sources of tax revenues for state and local governments?

Accepted Answer

The answer of What are the two main sources of...

Question 7

The largest category of expenditures for state and local governments is .

Accepted Answer

The answer of The largest category of expenditures for state...

Question 8

Over the past century in the U.S., what has been federal government revenue as a percentage of GDP? What has been state and local government revenue as a percentage of GDP?

Accepted Answer

The answer of Over the past century in the U.S.,...

Question 9

List the three most important expenditure programs of the federal government. How do they differ from the three most important expenditure programs of state and local governments? Explain why it makes more sense for the federal government to purchase "national defense" rather than state governments.

Accepted Answer

The answer of List the three most important expenditure programs...

Question 10

As a person's or family's income rises, the marginal federal income tax rate .

Accepted Answer

The answer of As a person's or family's income rises,...

Question 11

Suppose a recent increase in federal gasoline taxes is estimated to cause a $150 million reduction in the total surplus (consumer plus producer surplus) in the gasoline market. If tax revenues increased by $100 million, what is the deadweight loss associated with the tax? As a result of the tax, 10,000 people sold their cars and started riding their bicycles to work. How much of the burden of the deadweight loss is incurred by the bicycle riders?

Accepted Answer

The answer of Suppose a recent increase in federal gasoline...

Question 12

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

The answer of What is the current, annual, approximate amount...

Question 13

Most people in the United States believe that our tax system should be both and .

Accepted Answer

The answer of Most people in the United States believe...

Question 14

What are the three categories of the costs of taxes to taxpayers?

Accepted Answer

The answer of What are the three categories of the...

Question 15

Briefly describe some of the demographic trends that are predicted to increase the government's budget deficit.

Accepted Answer

The answer of Briefly describe some of the demographic trends...

Question 16

The United States federal government has a large budget deficit. Long-term projections suggest that under current law, taxes, as a percentage of GDP, will and government spending, as a percentage of GDP, will
__________.

Accepted Answer

The answer of The United States federal government has a...

Question 17

What has been the relationship over the past century between the U.S. economy's income and the percentage of that income that the government collects in revenues?

Accepted Answer

The answer of What has been the relationship over the...

Question 18

Of all the taxes collected in the U.S. economy, what percentage is collected by the federal government?

Accepted Answer

The answer of Of all the taxes collected in the...

Question 19

What are the two largest categories of federal tax receipts?

Accepted Answer

The answer of What are the two largest categories of...

Question 20

In 2011, what were the two largest sources of federal tax revenues, and what were the two largest expenses of the federal government?

Accepted Answer

The answer of In 2011, what were the two largest...

Quiz 12: The Design of the Tax System