01. Referring to Fig 2d and the attached table, determine whether average pre-tax income of the top 10%, top 5%, top 1% of households by income has increased or decreased in the recession years of 1980-81, 1990-91, and 2001 (as compared to immediately prior year). Increased decreased QUESTION 202. Referring to Fig 2d and the attached table, determine whether average pre-tax income of the top 10%, top 5%, top 1% of households by income has increased or decreased following the major tax cut years of 1982, 1987, and 2002-03. Increased decreased QUESTION 303. Referring to Fig 2d and the attached table, determine whether average federal individual income tax payments of the top 10%, top 5%, top 1% of households by income, has increased or decreased in the recession years of 1980-81, 1990-91, and 2001 (as compared to immediately prior year). Increased decreased QUESTION 404. Referring to Fig 2d and the attached table, determine whether average federal individual income tax payments of the top 10%, top 5%, top 1% of households by income, has increased or decreased following the major tax cut years of 1982, 1987, and 2002-03. Increased decreased QUESTION 505. Referring to Fig 2d, the attached table, and you answers the questions 1 through 4, is it reasonable to infer that pre-tax income is a more important determinant of tax revenue than tax rates (assuming that tax cuts are expected to decrease tax revenue)? YES No QUESTION 606. Referring to Fig 4b and the attached table, determine whether the shares of federal individual income taxes paid by the top 10%, top 5%, top 1% of households by income, has increased or decreased in the recession years of 1980-81, 1990-91, and 2001 (as compared to immediately prior year). Increased decreased QUESTION 707. Referring to Fig 4b and the attached table, determine whether the shares of federal individual income taxes paid by the top 10%, top 5%, top 1% of households by income, has increased or decreased following the major tax cut years of 1982, 1987, and 2002-03. Increased decreased QUESTION 808. Referring to Fig 4b and the attached table, what is remarkable about the shares of federal individual income taxes paid by the bottom 40% of households by income, since 2002? a) The share of federal individual income taxes paid by the bottom 40% have not changed much. b) The share of federal individual income taxes paid by the bottom 40% have been increasing. c) The share of federal individual income taxes paid by the bottom 40% have been decreasing. d) The share of federal individual income taxes paid by the bottom 40% have turned negative. QUESTION 909. Referring to Fig 4b, the attached table, and your answers to questions 7 and 8 above, is it reasonable to infer that income tax rate cuts tend to increase the share of taxes paid by top income taxpayers? YES NO QUESTION 1010. In 1979, the share of federal individual income taxes paid by the bottom 80% of taxpayers by income is ______%. QUESTION 1111. In 2007, the share of federal individual income taxes paid by the bottom 80% of taxpayers by income is ______%. QUESTION 1212. Referring to Fig 4b, the attached table, and your answers to questions 7, 8, 10, and 11 above, and assuming the "share" of taxes paid is the measure of "fair share," is it reasonable to infer that the rich DO pay their fair share of federal individual income taxes, especially as compared to the bottom 80% of taxpayers by income? YES NO QUESTION 13(1a) The Net federal government saving (budget deficit) for the 4th quarter of 2019 is:$______ billions. recession yearsImajor tax cutsItax increasesavg. pretax income ofTop 1%avg. pretax income ofTop 5%avg. pretax income ofTop 10%avg. pretax income ofHighest Quintileavg. pretax income ofAll QuintilesAvg. federal taxes paidby Top 1%Avg. federal taxes paidby Top 5%--Avg. federal taxes paidby Top 10%➡+Avg. federal taxes paidby Highest QuintileAvg. federal taxes paidby All QuintilesFig 2d. Avg pre-tax income & Avg federal tax payments by income class; Tax changes & RecessionsSources: NBER, Tax Found., CBO. (Avg federal tax payments = avg. pre-tax income - avg after-tax income)2000180016001400120010008006004002000recession yearsmajor tax cutstax increasesavg. pretax income of Top 1%avg. pretax income of Top 5%avg. pretax income of Top 10%avg. pretax income of Highest Quintileavg. pretax income of All QuintilesAvg. federal taxes paid by Top 1%Avg. federal taxes paid by Top 5%Avg. federal taxes paid by Top 10%Avg. federal taxes paid by Highest QuintileAvg. federal taxes paid by All Quintilesavg. pre-tax income in thousands of $(XXX 7 X - X PX K2000 2000E||1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20072000 2000 20002000 2000200020002000 2000 20002000 2000T20002000550.0 518.5 514.9 537.1 588.0 647.3 695.1 904.8 731.4 921.1 857.2 822.6 741.5 840.9 807.9 833.0 918.1 1012.6 1161.2 1304.3 1419.6 1551.3 1227.8 1087.6 1160.7 1380.0 1660.4 1790.8 1873.0248.8 236.9 232.7 238.0 250.6 274.7 285.9 344.3 305.2 346.6 338.2 324.5 304.7 330.3 323.8 334.3 358.7 384.4 423.7 461.9 492.3 522.4 444.3 406.9 430.4 485.8 555.5 582.4 611.2182.8 176.7 174.5 176.1 184.4 199.7 206.4 238.6 220.0 241.6 239.0 230.5 220.1 233.0 231.4 237.6 249.8 267.0 287.5 308.5 328.4 344.4 303.1 283.7 295.9 327.0 362.0 377.7 394.5140.3 135.7 134.7 134.7 139.2 148.9 152.9 172.5 162.5 174.8 173.9 168.8 162.9 170.1 170.2 173.6 181.8 190.9 202.3 214.7 227.5 236.5 213.9 203.3 210.1 227.8 246.7 256.0 264.763.4 61.3 61.1 60.9 61.3 64.0 65.6 70.4 68.0 71.0 71.6 70.8 69.0 70.8 71.1 72.0 74.7 77.2 80.3 84.2 87.8 89.2 84.2 80.6 81.8 86.3 90.5 93.3 96.0203.4 179.3 163.8 148.5 163.2 182.8 187.7 230.7 228.2 273.4 247.5 236.6 221.4 257.2 278.5 297.9 331.7 364.5 405.5 436.1 475.8 512.6 403.3 357.1 367.8 433.1 524.5 559.9 553.379.2 72.9 68.4 62.0 64.1 71.6 72.6 84.8 87.0 96.2 91.9 87.7 84.2 92.8 98.7 104.8 114.1 123.1 134.0 142.3 153.4 161.8 133.2 120.2 122.8 139.4 162.3 169.5 170.754.1 51.3 49.2 44.5 45.7 50.4 51.1 57.9 59.9 64.5 62.7 60.3 58.4 62.6 66.2 69.8 74.5 80.3 85.9 90.4 97.5 101.8 86.3 79.1 79.5 88.6 99.9 104.2 105.238.6 37.0 36.2 32.8 33.2 36.1 36.7 41.0 41.9 44.8 43.9 42.4 41.3 43.5 45.6 47.5 50.6 53.5 56.6 59.3 63.7 66.2 57.1 52.9 52.4 57.5 63.5 66.1 66.414.1 13.6 13.7 12.6 12.5 13.4 13.7 14.7 14.7 15.5 15.4 15.2 14.8 15.2 15.7 16.0 16.8 17.6 18.4 19.0 20.1 20.5 18.0 16.7 16.2 17.3 18.6 19.3 19.66005004003002001000avg. tax payments in thousands of $

“Since you have asked multiple questions, we will solve the first question for you. If you want any…

Answered: 01. Referring to Fig 2d and the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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QUESTION 2

02. Referring to Fig 2d and the attached table, determine whether average pre-tax income of the top 10%, top 5%, top 1% of households by income has increased or decreased following the major tax cut years of 1982, 1987, and 2002-03.

Increased

decreased

QUESTION 3

03. Referring to Fig 2d and the attached table, determine whether average federal individual income tax payments of the top 10%, top 5%, top 1% of households by income, has increased or decreased in the recession years of 1980-81, 1990-91, and 2001 (as compared to immediately prior year).

Increased

decreased

QUESTION 4

04. Referring to Fig 2d and the attached table, determine whether average federal individual income tax payments of the top 10%, top 5%, top 1% of households by income, has increased or decreased following the major tax cut years of 1982, 1987, and 2002-03.

Increased

decreased

QUESTION 5

05. Referring to Fig 2d, the attached table, and you answers the questions 1 through 4, is it reasonable to infer that pre-tax income is a more important determinant of tax revenue than tax rates (assuming that tax cuts are expected to decrease tax revenue)?

YES

No

QUESTION 6

06. Referring to Fig 4b and the attached table, determine whether the shares of federal individual income taxes paid by the top 10%, top 5%, top 1% of households by income, has increased or decreased in the recession years of 1980-81, 1990-91, and 2001 (as compared to immediately prior year).

Increased

decreased

QUESTION 7

07. Referring to Fig 4b and the attached table, determine whether the shares of federal individual income taxes paid by the top 10%, top 5%, top 1% of households by income, has increased or decreased following the major tax cut years of 1982, 1987, and 2002-03.

Increased

decreased

QUESTION 8

08. Referring to Fig 4b and the attached table, what is remarkable about the shares of federal individual income taxes paid by the bottom 40% of households by income, since 2002?

		a) The share of federal individual income taxes paid by the bottom 40% have not changed much.
		b) The share of federal individual income taxes paid by the bottom 40% have been increasing.
		c) The share of federal individual income taxes paid by the bottom 40% have been decreasing.
		d) The share of federal individual income taxes paid by the bottom 40% have turned negative.

QUESTION 9

09. Referring to Fig 4b, the attached table, and your answers to questions 7 and 8 above, is it reasonable to infer that income tax rate cuts tend to increase the share of taxes paid by top income taxpayers?

YES

NO

QUESTION 10

10. In 1979, the share of federal individual income taxes paid by the bottom 80% of taxpayers by income is ______%.

QUESTION 11

11. In 2007, the share of federal individual income taxes paid by the bottom 80% of taxpayers by income is ______%.

QUESTION 12

12. Referring to Fig 4b, the attached table, and your answers to questions 7, 8, 10, and 11 above, and assuming the "share" of taxes paid is the measure of "fair share," is it reasonable to infer that the rich DO pay their fair share of federal individual income taxes, especially as compared to the bottom 80% of taxpayers by income?

YES

NO

QUESTION 13

(1a) The Net federal government saving (budget deficit) for the 4th quarter of 2019 is:$______ billions.

recession years
Imajor tax cuts
Itax increases
avg. pretax income of
Top 1%
avg. pretax income of
Top 5%
avg. pretax income of
Top 10%
avg. pretax income of
Highest Quintile
avg. pretax income of
All Quintiles
Avg. federal taxes paid
by Top 1%
Avg. federal taxes paid
by Top 5%
--Avg. federal taxes paid
by Top 10%
➡+Avg. federal taxes paid
by Highest Quintile
Avg. federal taxes paid
by All Quintiles
Fig 2d. Avg pre-tax income & Avg federal tax payments by income class; Tax changes & Recessions
Sources: NBER, Tax Found., CBO. (Avg federal tax payments = avg. pre-tax income - avg after-tax income)
2000
1800
1600
1400
1200
1000
800
600
400
200
0
recession years
major tax cuts
tax increases
avg. pretax income of Top 1%
avg. pretax income of Top 5%
avg. pretax income of Top 10%
avg. pretax income of Highest Quintile
avg. pretax income of All Quintiles
Avg. federal taxes paid by Top 1%
Avg. federal taxes paid by Top 5%
Avg. federal taxes paid by Top 10%
Avg. federal taxes paid by Highest Quintile
Avg. federal taxes paid by All Quintiles
avg. pre-tax income in thousands of $
(XXX 7 X - X PX K
2000 2000
E
||
1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
2000 2000 2000
2000 2000
2000
2000
2000 2000 2000
2000 2000
T
2000
2000
550.0 518.5 514.9 537.1 588.0 647.3 695.1 904.8 731.4 921.1 857.2 822.6 741.5 840.9 807.9 833.0 918.1 1012.6 1161.2 1304.3 1419.6 1551.3 1227.8 1087.6 1160.7 1380.0 1660.4 1790.8 1873.0
248.8 236.9 232.7 238.0 250.6 274.7 285.9 344.3 305.2 346.6 338.2 324.5 304.7 330.3 323.8 334.3 358.7 384.4 423.7 461.9 492.3 522.4 444.3 406.9 430.4 485.8 555.5 582.4 611.2
182.8 176.7 174.5 176.1 184.4 199.7 206.4 238.6 220.0 241.6 239.0 230.5 220.1 233.0 231.4 237.6 249.8 267.0 287.5 308.5 328.4 344.4 303.1 283.7 295.9 327.0 362.0 377.7 394.5
140.3 135.7 134.7 134.7 139.2 148.9 152.9 172.5 162.5 174.8 173.9 168.8 162.9 170.1 170.2 173.6 181.8 190.9 202.3 214.7 227.5 236.5 213.9 203.3 210.1 227.8 246.7 256.0 264.7
63.4 61.3 61.1 60.9 61.3 64.0 65.6 70.4 68.0 71.0 71.6 70.8 69.0 70.8 71.1 72.0 74.7 77.2 80.3 84.2 87.8 89.2 84.2 80.6 81.8 86.3 90.5 93.3 96.0
203.4 179.3 163.8 148.5 163.2 182.8 187.7 230.7 228.2 273.4 247.5 236.6 221.4 257.2 278.5 297.9 331.7 364.5 405.5 436.1 475.8 512.6 403.3 357.1 367.8 433.1 524.5 559.9 553.3
79.2 72.9 68.4 62.0 64.1 71.6 72.6 84.8 87.0 96.2 91.9 87.7 84.2 92.8 98.7 104.8 114.1 123.1 134.0 142.3 153.4 161.8 133.2 120.2 122.8 139.4 162.3 169.5 170.7
54.1 51.3 49.2 44.5 45.7 50.4 51.1 57.9 59.9 64.5 62.7 60.3 58.4 62.6 66.2 69.8 74.5 80.3 85.9 90.4 97.5 101.8 86.3 79.1 79.5 88.6 99.9 104.2 105.2
38.6 37.0 36.2 32.8 33.2 36.1 36.7 41.0 41.9 44.8 43.9 42.4 41.3 43.5 45.6 47.5 50.6 53.5 56.6 59.3 63.7 66.2 57.1 52.9 52.4 57.5 63.5 66.1 66.4
14.1 13.6 13.7 12.6 12.5 13.4 13.7 14.7 14.7 15.5 15.4 15.2 14.8 15.2 15.7 16.0 16.8 17.6 18.4 19.0 20.1 20.5 18.0 16.7 16.2 17.3 18.6 19.3 19.6
600
500
400
300
200
100
0
avg. tax payments in thousands of $

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