Microeconomics HW chapter 20 - Assignment Essays %

question

Regressive tax

answer

A tax in which the average rate declines as income increases

question

The rich are more effected by _____ taxes, whereas the poor feel the pinch more from _____ taxes

answer

Progressive; Regressive

question

Which of the following help explain why property taxes are regressive?

answer

If a property is rented, property owners add the tax to the rents that are changed.
The poor must spend a larger percentage of their incomes for housing than do high-income families.

question

Government spending that is financed by borrowing is often referred to as:

answer

Deficit Spending

question

Which of the following statements are true regarding a progressive tax?

answer

It claims a larger percentage of one's income as income increases
.....

question

a tax is _____ if its average rate remains the same regardless of the size of income.

answer

Proportional

question

the benefits-received principle and the ability-to-pay principle refer to alternative methods on:

answer

-The distribution of income
-How to apportion the economy's tax burden

question

The two leading philosophies on how the economy's tax burden should be apportioned are:

answer

-The benefits-received principle
-The ability-to-pay principle

question

If demand is _____ in the relevant price range, price rises modestly when an excise tax is imposed, thus the producer bears most of the tax burden

answer

Elastic

question

Sine demand for certain products is relatively inelastic, a tax on these products does not reduce sales by much and tax revenues stay high. This is the reason why:

answer

Politicians seeking revenues impose heavy excise taxes on these products

question

Gasoline, liquor, tobacco products like cigarettes, and cell-phone usage are all products that are considered to be _____ and therefore are taxed heavily because of their ability to generate _____.

answer

Inelastic; Revenue

question

If supply is _____ , an excise tax on a product results in a small increase in price and the producers bears most of the tax burden.

answer

Inelastic

1 of 12

question

Regressive tax

answer

A tax in which the average rate declines as income increases

question

The rich are more effected by _____ taxes, whereas the poor feel the pinch more from _____ taxes

answer

Progressive; Regressive

question

Which of the following help explain why property taxes are regressive?

answer

If a property is rented, property owners add the tax to the rents that are changed.
The poor must spend a larger percentage of their incomes for housing than do high-income families.

question

Government spending that is financed by borrowing is often referred to as:

answer

Deficit Spending

question

Which of the following statements are true regarding a progressive tax?

answer

It claims a larger percentage of one's income as income increases
.....

question

a tax is _____ if its average rate remains the same regardless of the size of income.

answer

Proportional

question

the benefits-received principle and the ability-to-pay principle refer to alternative methods on:

answer

-The distribution of income
-How to apportion the economy's tax burden

question

The two leading philosophies on how the economy's tax burden should be apportioned are:

answer

-The benefits-received principle
-The ability-to-pay principle

question

If demand is _____ in the relevant price range, price rises modestly when an excise tax is imposed, thus the producer bears most of the tax burden

answer

Elastic

question

Sine demand for certain products is relatively inelastic, a tax on these products does not reduce sales by much and tax revenues stay high. This is the reason why:

answer

Politicians seeking revenues impose heavy excise taxes on these products

question

Gasoline, liquor, tobacco products like cigarettes, and cell-phone usage are all products that are considered to be _____ and therefore are taxed heavily because of their ability to generate _____.

answer

Inelastic; Revenue

question

If supply is _____ , an excise tax on a product results in a small increase in price and the producers bears most of the tax burden.

answer

Inelastic

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