hich of the following statements regarding a Laffer curve is the most plausible? Reducing a high tax rate will have the same effect on tax revenue as reducing a low tax rate. a. b. C. d. Reducing a tax rate can never increase tax revenue. Reducing a high tax rate is less likely to increase tax revenue than is reducing a low tax rate. Reducing a high tax rate is more likely to increase tax revenue than is reducing a low tax rate.

hich of the following statements regarding a Laffer curve is the most plausible? Reducing a high tax rate will have the same effect on tax revenue as reducing a low tax rate. a. b. C. d. Reducing a tax rate can never increase tax revenue. Reducing a high tax rate is less likely to increase tax revenue than is reducing a low tax rate. Reducing a high tax rate is more likely to increase tax revenue than is reducing a low tax rate.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that the Philippine tax schedule given below is being implemented this year. (sorry, disregard the box) Tax Payment P 1,000 4,500 14,000 Annual Income P10,000 30,000 70,000 140,000 250,000 500,000 35,000 75,000 160,000
Since 1969, the U.S. federal government had a budget surplus O in the late 1980s O in the late 1970s Oin the late 1990s O in the late 2000s
What is the effect of an increase in taxes when the economy is above full employment? What is the magnitude of the tax multiplier? An increase in taxes when the economy is above full employment _______ aggregate demand and real GDP, and the price level _______. A. increases; falls B. increases; rises C. does not change; does not change D. decreases; falls The magnitude of the tax multiplier is equal to _______. A. MPC times the government expenditure multiplier B. the government expenditure multiplier divided by MPC C. MPC D. the government expenditure multiplier
Suppose a tax is such that an individual with an income of $10,000 pays $2,500 of tax, a person with an income of $20,000 pays $5,000 of tax, a person with an income of $30,000 pays $7,500 of tax, and so forth. Instructions: Enter your answers rounded to 1 decimal place. a. What is each person's average tax rate? Income Таx Paid Average Tax Rate $ 10,000 $ 2,500 % 20,000 5,000 30,000 7,500
a) Explain very briefly what you understand from income effect and substitution effects of change in income tax rates (you do not need to use a graph) b) Discuss whether supply-side policies have been successful in improving the performance of an economy regarding taxation.
According to the textbook, which of the following statements about taxes in the U.S. is (are) correct? (x) Tax evasion is illegal, but tax avoidance is legal. (y) Most economists believe that a corporate income tax affects the stockholders of a corporation but not its employees or customers. (z) In practice, the U.S. income tax system is filled with special provisions that alter a family's tax based on its specific circumstances. A. (x), (y) and (z) B. (x) and (y) only C. (x) and (z) only D. (y) and (z) only E. (z) only
Which tax system requires higher-income taxpayers to have lower tax rates, even though they pay a larger amount of tax when compared to lower-income taxpayers? a. a proportional tax b. a progressive tax c. a regressive tax
On average, does an increase in taxes raise or lower real GDP? If taxes as a percent of GDP go up 1 percent, by how much does real GDP change? Are the decreases in real GDP caused by tax increases temporary or permanent? Does the intention of a tax increase matter?
Briefly explain the purpose served by payroll taxes and how they are collected. Describe any comment that economists point out with regard to payroll taxes.
- Most economists have reached the following conclusion about supply-side economics. Supply-side tax cuts are likely to reduce income inequality. Supply-side tax cuts are almost certain to lead to smaller budget deficits. Supply-side tax cuts are likely to widen income inequality. None of these.
Which of the following is true?
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