Refer to Exhibit 4. If a tax is placed on the product in this market total surplus is the area ?
A. A + B + C + D+ E +F
B. A + B + C + D
C. A + D
D. B + C + E + F
Taxation
Refer to Exhibit 4. If a tax is placed on the product in this market tax revenue paid by the sellers is the area ?
Refer to Exhibit 4. If a tax is placed on the product in this market tax revenue paid by the sellers is the area ?
A. C + F
B. A
C. B
D. C
Refer to Exhibit 4. If a tax is placed on the product in this market, producer surplus is the area?
Refer to Exhibit 4. If a tax is placed on the product in this market, producer surplus is the area?
A. A + B + E
B. A + B + C + D
C. A
D. D
Refer to Exhibit 4. If there is no tax placed on the product in this market, producer surplus is the area ?
Refer to Exhibit 4. If there is no tax placed on the product in this market, producer surplus is the area ?
A. A + B + E
B. D
C. C + F
D. C + D + F
Which of the following taxes can be supported by the benefits principle of taxation ?
Which of the following taxes can be supported by the benefits principle of taxation ?
A. All these answers can be supported by the benefits principle of taxation
B. Progressive income taxes used to pay for national defense
C. Petrol taxes used to pay for roads
D. property taxes used to pay for policies and the court system
A tax system is regarded as horizontally equitable if ?
A tax system is regarded as horizontally equitable if ?
A. all taxpayers pay the same amount of tax
B. taxes on all goods are levied at the same rate
C. taxes are as low as possible
D. the system comprises only lump sum taxes
E. taxpayers with similar abilities to pay taxes pay the same amount
The appropriate tax rate to consider gauging how much the tax system distorts incentives and decision making is the ?
The appropriate tax rate to consider gauging how much the tax system distorts incentives and decision making is the ?
A. Proportional tax rate
B. average tax rate
C. marginal tax rate
D. vertical tax rate
E. horizontal tax rate
The ability-to-pay principle of taxation suggests that if a tax system is to be vertically equitable it should be ?
The ability-to-pay principle of taxation suggests that if a tax system is to be vertically equitable it should be ?
A. efficient
B. progressive
C. regressive
D. proportional
The average tax rate is ?
The average tax rate is ?
A. total taxes paid divided by total income
B. the extra taxes paid on an additional dollar or income.
C. the taxes paid by the marginal worker
D. total income divided by total taxes paid
A tax for which high income taxpayers pay a smaller fraction of their income than do low income taxpayers is known as ?
A tax for which high income taxpayers pay a smaller fraction of their income than do low income taxpayers is known as ?
A. a proportional tax
B. a regressive tax
C. an equitable tax
D. a progressive tax