Microeconomics Ch.8 Taxes - Assignment Essays %

question

Tax Incidence

answer

The division of the tax between the buyer and the seller.

question

Excess Burden

answer

The deadweight loss from a tax.

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Benefits Principle

answer

The proposition that people should pay taxes equal to the benefits they receive from public goods and services.

question

Ability-to-Pay Principle

answer

The proposition that people should pay taxes according on how easily they can bear the burden

question

Horizontal Equity

answer

The requirement that taxpayers with the same ability to pay should pay the same taxes.

question

Vertical Equity

answer

The requirement that taxpayers with a greater ability to pay bear a greater share of the taxes.

question

Average Tax Rate

answer

The percentage of income that is paid in tax.

question

Marginal Tax Rate

answer

The percentage of an additional dollar of income that is paid in tax.

question

Progressive Tax

answer

A tax whose average rate increases as income increases.

question

Proportional Tax

answer

A tax whose average rate is constant at all income levels.

question

Regressive Tax

answer

A tax whose average rate decreases an income increases.

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Flat Tax

answer

A tax system with a constant average and marginal tax rate: A proportional tax.

question

Fair Tax

answer

A proposal to tax the purchase pf consumption goods and services above the poverty level, considered the U.S. Congress in 1999.

question

the more inelastic the demand for the good

answer

, the larger is the share of the tax paid by the buyer

question

the more inelastic the supply of the good

answer

the larger i the share of the tax paid by the seller

question

`perfect inelastic demand

answer

buyer pays and efficient

question

...

answer

...

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perfect inelastic supply

answer

seller pays and inefficient

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when the marginal benefit equals marginal cost

answer

there is no deadweight loss

question

perfectly elastic supply

answer

buyers pay and inefficient

question

taxable income

answer

total income minus a personal exemption and standard deduction.

1 of 21

question

Tax Incidence

answer

The division of the tax between the buyer and the seller.

question

Excess Burden

answer

The deadweight loss from a tax.

question

Benefits Principle

answer

The proposition that people should pay taxes equal to the benefits they receive from public goods and services.

question

Ability-to-Pay Principle

answer

The proposition that people should pay taxes according on how easily they can bear the burden

question

Horizontal Equity

answer

The requirement that taxpayers with the same ability to pay should pay the same taxes.

question

Vertical Equity

answer

The requirement that taxpayers with a greater ability to pay bear a greater share of the taxes.

question

Average Tax Rate

answer

The percentage of income that is paid in tax.

question

Marginal Tax Rate

answer

The percentage of an additional dollar of income that is paid in tax.

question

Progressive Tax

answer

A tax whose average rate increases as income increases.

question

Proportional Tax

answer

A tax whose average rate is constant at all income levels.

question

Regressive Tax

answer

A tax whose average rate decreases an income increases.

question

Flat Tax

answer

A tax system with a constant average and marginal tax rate: A proportional tax.

question

Fair Tax

answer

A proposal to tax the purchase pf consumption goods and services above the poverty level, considered the U.S. Congress in 1999.

question

the more inelastic the demand for the good

answer

, the larger is the share of the tax paid by the buyer

question

the more inelastic the supply of the good

answer

the larger i the share of the tax paid by the seller

question

`perfect inelastic demand

answer

buyer pays and efficient

question

...

answer

...

question

perfect inelastic supply

answer

seller pays and inefficient

question

when the marginal benefit equals marginal cost

answer

there is no deadweight loss

question

perfectly elastic supply

answer

buyers pay and inefficient

question

taxable income

answer

total income minus a personal exemption and standard deduction.

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