Which of the following statements is/are correct? Select one: a. A head tax is proportional to the income base. b. An excise tax of R20 000 is payable on imported vehicles with a value of R160 000. The tax increases to R37 500 if the value of the vehicle is R300 000. The tax rate structure is therefore proportional. Direct taxes such as a tax on cigarettes can be shifted easily. C. O d. Taxing the value of shares owned by individuals is an excellent base for personal income tax. Check

Which of the following statements is/are correct? Select one: a. A head tax is proportional to the income base. b. An excise tax of R20 000 is payable on imported vehicles with a value of R160 000. The tax increases to R37 500 if the value of the vehicle is R300 000. The tax rate structure is therefore proportional. Direct taxes such as a tax on cigarettes can be shifted easily. C. O d. Taxing the value of shares owned by individuals is an excellent base for personal income tax. Check

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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7. Within the context of taxation policy, many economists have preferred the use of consumption tax to income tax. Explain.
d. 25. Clear my choice Price P₁ P₂ C E GH The tax in the graph is equal to Select one: 2 S₂ Quantity O a. P₁-P4 O b. P2-P4 OC. P4-Ps O d. Answers (a) and (c) both measure the excise tax. O e. Answers (b) and (c) both measure the excise tax.
Figure 4-5. The graph shows the impact of an excise tax. Price $2.00 1.50 1.00 .50 B A M E H K I 350 F 500 Quantity tax G Stax $1.00 for consumers and $0.50 for producers $1.00 for consumers and $1.00 for producers. $0.25 for consumers and $0.75 for producers. $0.50 for consumers and $0.50 for producers. S DSR Refer to Figure 4-5. The amount of the actual tax burden paid by consumers and producers is
xation) 12 11 20 9. 1. 1 6. S 4 3- 2- Figure 8-22 90 300 130 120 Refer to Figure 8-22. Suppose the government changed the per-unit tax from $3.00 to $4.50. Compared to the original tax rate, this higher tax rate would a. increase tax revenue and increase the deadweight loss from the tax. b. increase tax revenue and decrease the deadweight loss from the tax. c. decrease tax revenue and increase the deadweight loss from the tax d. decrease tax revenue and decrease the deadweight loss from the tax.
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 of the following best describes government revenue?
4.7) Consider a national income tax that is structured as follows: Income Marginal tax rate $0-$10,000 0% $10,001-- $60,000 5% $60,001and above 0% For each of the following workers determine his or her marginal and average tax rate d. Would you describe the tax system as proportional, regressive, or progressive? Explain
Question 29 When a excise tax is placed on the seller of a good: a the buyer is likely to pay a higher price and the seller is likely to receive a lower price from the sale of the good once the tax is considered. b the buyer is likely to pay a higher price and the seller is likely to receive the original price from the sale of the good once the tax is considered. c the buyer is likely to pay the original price and the seller is likely to receive a lower price from the sale of the good once the tax is considered. d the seller is likely to receive a higher price from the sale and the buyer is likely to pay a lower price for the good once the tax is considered.
1-Consider the three following households: Household A with an income of 12000$ Household B with an income of 15000$ Household C with an income of 30000$ The income tax in the country X is proportional and equals 2% The income tax in the country Y is as follows: The households who are paid under 15000$ would pay a tax of 10% and those above 15000% would pay a tax of 20% The income tax in the country Z is regressive. Households A, B and C would pay 10% or 20% or 30%. Calculate the income tax for the three households in each country.
9. When a sales tax is imposed on sellers, we can imagine a hypothetical supply curve shifted to the left such that the vertical distance between the original supply curve and the new (supply + tax) curve equals the sales tax divided by the price elasticity of demand. sales tax multiplied by the price elasticity of demand. sales tax multiplied by the price elasticity of supply. amount of the sales tax.