A progressive tax system is one where ? A. marginal tax rates are high. B. higher income taxpayers pay more taxes than do lower income taxpayers. C. marginal tax rates are low.D. higher income taxpayers pay a greater percentage of…
The appropriate tax rate to consider judging the vertical equity of a tax system is the ? A. marginal tax rateB. average tax rate C. horizontal tax rate D. proportional tax rate
An efficient tax ? A. minimizes the administrative burden form the taxB. does all the things describe in these answers C. raises revenue at the smallest possible cost to taxpayers. D. minimize the deadweight loss from the tax.
Sana values a pair of blue jeans at Rs400. If the price is Rs350 Sana buys the jeans and generates consumer surplus of Rs50 Suppose a tax is placed on blue jeans that causes the price of blue jeans to…
When a tax distorts incentives to buyers and sellers so that fewer goods are produced and sold than otherwise the tax has ? A. caused a deadweight loss B. decreased equity C. generated no tax revenue D. increased efficiency
If a tax on a good is doubled the deadweight loss from the tax ? A. doubles B. stays the sameC. increase by a factor of four. D. could rise or fall
When a tax on a good start small and is gradually increased tax revenue ? A. will fall B. will riseC. will first rise and then fall D. will first fall and then rise
Since the supply of undeveloped land is relatively inelastic a tax on undeveloped land would generate ? A. a small deadweight loss and the burden of the tax would fall on the renter B. a large deadweight loss and the…
A tax on petrol is likely to ? A. generate a deadweight loss that is unaffected by the time period over which it is measuredB. cause a greater deadweight loss in the long run when compared to the short run…
Refer to Exhibit 4. Which of the following is true with regard to the burden of the tax in Exhibit 4 ? A. The buyers pay a larger portion of the tax because demand is more inelastic than supply B.…