MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Question
Chapter 12, Problem 17SQ
To determine
The change in government taxes as a percentage of GDP.
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Students have asked these similar questions
A government replaces progressive taxes with regressive taxes. What is the likely outcome?
a. Distribution of Income more even; Marginal Tax Rate decrease
b. Distribution of Income more uneven; Marginal Tax Rate increase
c. Distribution of Income more uneven; Marginal Tax Rate decrease
d. Distribution of Income more even; Marginal Tax Rate increase
When government increases a fixed tax, consumption schedule
a.
shifts downward in a parallel manner.
b.
shifts upward in a parallel manner.
c.
becomes vertical.
d.
becomes horizontal.
A proportional tax is a tax for which people with lower incomes
Group of answer choices
A. pay a higher percentage of their incomes in tax than do people with higher incomes.
B. pay a lower percentage of their incomes in tax than do people with higher incomes.
C. pay the same percentage of their incomes in tax as do people with higher incomes.
D. pay the same amount of taxes as people with higher incomes pay.
Chapter 12 Solutions
MACROECONOMICS FOR TODAY
Ch. 12.4 - Prob. 1YTECh. 12 - Prob. 1SQPCh. 12 - Prob. 2SQPCh. 12 - Prob. 3SQPCh. 12 - Prob. 4SQPCh. 12 - Prob. 5SQPCh. 12 - Prob. 6SQPCh. 12 - Prob. 7SQPCh. 12 - Prob. 8SQPCh. 12 - Prob. 9SQP
Ch. 12 - Prob. 10SQPCh. 12 - Prob. 11SQPCh. 12 - Prob. 1SQCh. 12 - Prob. 2SQCh. 12 - Prob. 3SQCh. 12 - Prob. 4SQCh. 12 - Prob. 5SQCh. 12 - Prob. 6SQCh. 12 - Prob. 7SQCh. 12 - Prob. 8SQCh. 12 - Prob. 9SQCh. 12 - Prob. 10SQCh. 12 - Prob. 11SQCh. 12 - Prob. 12SQCh. 12 - Prob. 13SQCh. 12 - Prob. 14SQCh. 12 - Prob. 15SQCh. 12 - Prob. 16SQCh. 12 - Prob. 17SQCh. 12 - Prob. 18SQCh. 12 - Prob. 19SQCh. 12 - Prob. 20SQ
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Similar questions
- Assume a state's general sales tax is 6%; this is an example of a _______________ income tax. A. Progressive B. Proportional C. Regressivearrow_forwardDefine government budget in not more than 3 linesarrow_forwardQUESTION 21 progressive tax system implies that the proportion of income paid to taxes rises as income increases and falls as income decreases. a. False b. Truearrow_forward
- A tax system in which average tax rates fall as income rises is a _____ tax system; the way in which the average tax rate changes as income rises is a measure of _____ equity. a. regressive; vertical b. regressive; horizontal c. progressive; vertical d. progressive; horizontalarrow_forwardTo fully understand the progressivity of government policies, one should only look at the proportion of total income that individuals pay in taxes each year. a. True Ob. Falsearrow_forwardHave spending and taxes by state and local governments In the United States had a generally upward or downward trend in the last few decades?arrow_forward
- A balanced budget occurs when government a. outlays exceeds tax revenues. b. tax revenues exceeds outlays. c. tax revenues equals outlays. d. expenditure is zero.arrow_forwardWrite the letter of your choice on the space provided before each number. Thus, A – if only the 1st statement is CORRECT; B- if only the 2ND statement is CORRECT; C- if both 1st and 2nd statements are CORRECT and D- if both 1st and 2nd statements are INCORRECT. 1. Progressive taxes place a greater burden on those best able to pay. Value added tax is a progressive tax. 2. Proportional taxes are taxes levied at a constant rate. These taxes place an equal burden on the rich, the middle class, and the poor.arrow_forwardEconomics 6. Taxes where high income households pay a higher percentage of their income in taxes than low income households are considered to be: regressive progressive aggressive flatarrow_forward
- What is the marginal tax rate? Select one: A. Total income divided by total taxes. B. The proportion of additional income which is taxed. C. Total taxes divided by total income.arrow_forwardA regressive tax A. imposes a greater burden on those with higher incomes than on those with lower incomes B. is based on the ability to pay principle C. takes a greater percentage of the income of lower-income groups than of higher-income groups. D. is based on the benefits received principle. E. is considered to be the most equitable type of taxarrow_forwardWhich of the following is incorrect regarding tax revenues? a.they increase during recessions b.they increase during economic expansions c. they are a revenue source in the government's budget d. they change with changes in the tax ratearrow_forward
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