The percentage of an increase in income that is taxed is: O a regressive tax. the marginal tax rate. the average tax rate. a flat tax.

Suppose that the demand for CDs is very price elastic and the supply is very price inelastic. A per unit tax imposed on CDs would be borne a. equally by buyers and sellers. b. more heavily by buyers. c. more heavily by sellers. d. by neither buyers or sellers.

Describe Progressive taxation. And Regressive taxation

Percent of Income Paid in Total amount Income Tax of Tax Paid Family $10,000 10% $1,000 A Family $50,000 20% $10,000 В Family $100,000 30% $30,000 C Identify the tax structure based on the tax chart. Proportional Tax Progressive Tax Regressive Tax

8. Explain why each of the following taxes is progressive or regressive. a. $1 per pack federal excise tax on cigarettes b. The federal individual income tax d. The federal payroll tax.

The incidence of a tax: - refers to who writes the check to the government.   - is a measure of the revenue the government receives from it. - is a measure of the deadweight loss generated by the tax. - refers to who really bears the burden of the tax.

The incidence of a tax falls more heavily on: A. Consumers than producers if demand is more inelastic than supply B. Producers than consumers of supply is more inelastic than demand C. Consumers than producers if supply is more elastic than demand D. All of the above are correct

When a tax is collected from the buyers in a market,. a. the tax burden falls most heavily on the buyersb. the buyers bear the burden of the taxc. the sellers bear the burden of the taxd. the tax burden on the buyers and sellers is the same as an equivalent tax collected from the sellers

7. Within the context of taxation policy, many economists have preferred the use of consumption tax to income tax. Explain.

Government collects the largest percentage of its revenue in which of the following ways? A) excise tax B) payroll tax C) corporate income tax D) personal income tax