Which of the following statements is correct?a) Fiscal incidence analysis ignores the distributional effects of taxes.b)c)Disposable incomes reflect the redistributive and poverty-reducing effects of cash transfers, amongother things.Fiscal incidence studies usually do not provide poverty rates for final incomes.d) Final incomes do not include the redistributive and poverty-reducing effects of indirect subsidies.QUESTION 20Which of the following is not a reason for government intervention in education and health care markets?a) Positive externalitiesb)Information asymmetryc)Allocative inefficienciesd)Very big market for both education and healthcare services(4

Approach to solving the question: Detailed explanation:Question 1Correct Answer:b) Disposable…

Answered: Which of the following statements is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which of the following government programs are financed by payroll tax? a) Medicare, food stamps, and social security. b) Medicaid, disability insurance, and Medicare. c) Disability, social security, and food stamps. d) Social security, disability, and Medicaid.
Which of the following is an example of a potential tax implication resulting from recent government policies? A)Increase in tax rates for high - income earners B) Expansion of tax deductions for charitable donations C) Introductionof tax credits for small businesses D) Elimination of payroll taxes for all employees
Which of the following government spending categories falls into the discretionary category SNAP payments (suuplemental nutrition assistance program, colloquially known as food stamps) medicaid payments O salaries of employees of the Bureau for Economic Analysis O social security payments
The Malaysian government plays a crucial role to ensure fair distribution of income and wealth in society through the implementation of tax-transfer schemes and social safety net programs. Are these fiscal instruments sufficient to address the issue of fair distribution? What constitutes fair distribution?
Consider the following components of GAVbp:Agriculture, Forestry and Fisheries = 2072Industry = 18723Services = 34195and the following additional data: Indirect taxes net of subsidies = 3859Fixed capital consumption = 6388Imports = 12034Exports = 10357 Calculate the amount of:a) GDPmp.b) Internal Demand or Internal Procurement
Tax liability is given by the function T(y) = -10,000 + 0.25y where y is income. 7. The marginal tax rate in Tuvalu is: 8. The average tax rate in Tuvalu on an income of 40,000 is equal to: 9. The tax system is Tuvalu is; a) progressive b) regressive c) proportional
Answer is 10,786.8
The negative income tax has been proposed as a means The negative income tax has been proposed as a means of increasing both the efficiency and the equity of Canada’s tax system (see Applying Economic Concepts 18-1 on page 465). The most basic NIT can be described by two variables: the guaranteed annual income and the marginal tax rate. Suppose the guaranteed annual income is $8000 and the marginal tax rate on every dollar earned is 35 percent. With this NIT, after-tax income is given by After-tax income = 8000 + (1 – 0.35) X (Earned income) a. On a scale diagram with after-tax income on the vertical axis and earned income on the horizontal axis, draw the NIT relationship between earned income and after-tax income. b. What is the level of income at which taxes paid on earned income exactly equal the guaranteed annual income? c. The average tax rate is equal to total net taxes paid divided by earned income. Provide an algebraic expression for the average tax…
Song earns $148,000 taxable income as an interior designer and is taxed at an average rate of 20 percent (i.e., $29,600 of tax). Answer the questions below assuming that Congress increases the income tax rate such that Song's average tax rate increases from 20 percent to 25 percent. Required: What will happen to the government's tax revenues if Song chooses to spend more time pursuing her other passions besides work in response to the tax rate change and therefore earns only $111,000 in taxable income? What is the term that describes this type of reaction to a tax rate increase? What types of taxpayers are likely to respond in this manner?
QUESTION 1 A tax that has a larger relative impact on the incomes of high-income individuals than on low-income individuals is considered to be A) Progressive B) Regressive C) Neutral D) Indeterminate

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