MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Chapter 12, Problem 20SQ
To determine
The shortsightedness effect.
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Explain how fiscal policy, monetary policy, and economic factors influence public budgeting. In what ways have you personally been impacted by state or local budgeting policies?
Write true or false for the following:
a.The government modifies the taxation system sometimes to discourage spending so it can mop up over production in the economy.
b.A progressive tax system increases income inequality.
c. direct tax is said to be direct tax when the impact and incidence of a tax are on one and the same person.
2. Fill in the blanks with the correct terms
______is a tax where the _____ falls on one person and the _____
Optimal fiscal federalism refers to
A.the optimal distribution of property taxes across local governments within a state.
B.the optimal division of wealth across states.
C.the division of offering and financing of public goods at different levels of government that results in the optimal provision of public goods.
D.the offering and financing of public goods at the federal level that results in the highest quantity of public goods provided.
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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- 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 increasearrow_forwardTrue or False: a. Federal spending has grown substantially in recent decades. b. By world standards, the U.S. government controls a relatively large share of the U.S. economy. c. A majority of the federal government’s revenue is collected through personal income taxes. d. Education spending is slightly larger at the federal level than at the state and local level. e. State and local government spending has not risen much in recent decades. f. Defense spending is higher now than ever. g. The share of the economy going to federal taxes has increased substantially over time. h. Foreign aid is a large portion, although less than half, of federal spending. i. Federal deficits have been very large for the last two decades. j. The accumulated federal debt as a share of GDP is near an all-time high.arrow_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
- 40. The most efficient tax system has a broad tax base and a low tax rate. A) True B) False 41. Making the income tax more progressive by adding more tax brackets potentially can result in A) stronger economic growth B) a more "equitable" tax C) no effect on equity or economic growth D) slower economic growth 42. The Atlanta city council decides to double taxes on small business in the downtown area to raise more tax revenue to fund more social programs. From an economic growth perspective, why is this a misguided economic policy? A) it is not a bad policy; doubling taxes will automatically double tax revenue B) excessive taxes on business can result in reduced jobs, incomes and business creation because business simply moves to a new government jurisdiction. C) it is not a bad policy; raising taxes will double tax revenue, raise income levels, and encourage business creation. D) excessive taxes will provide more social benefits, so business will tolerate unusually high taxes and stay…arrow_forward1. Explain the Median Voter Theory in your own words and describe how it impacts the campaign trail. It may help to use a specific political issue as an example. 2. Describe one benefit that arises from median voter theory. 3. In response to two of your peers, describe a negative outcome that comes from Median Voter Theory. It may help to think about it in terms of: a. Candidates' representatich of their base b. Impact on policy that ends up being passed for society.arrow_forwardA 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_forward
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- Pls help me answer these 2 multiple questions. Thank you! 1. The individual income tax is a manifestation of this system of taxation: a. Mixed b. Proportional c. Progressive d. Regressive 2. Which of the following is TRUE? a. When the tax law is vague or ambiguous, it is to be interpreted liberally in favor of the taxing authority b. When the tax law is vague or ambiguous, it is to be interpreted strictly against the taxpayer c. When the tax law is clear, it requires no interpretation d. As to exemption, the provision is to be interpreted liberally in favor of the taxpayer e. As to exemption, the provision is to be interpreted strictly against the favor of the taxing authorityarrow_forwardA progressive tax is: A. designed to take a greater percentage of the income of lower-income groups than of higher-income groups B. based on the benefits received principle. C. not based on the ability to pay principle D. designed so that everybody would be charged the same percentage of their income as taxes. E. designed to take a larger percentage of the income of higher-income groups than of lower-income groupsarrow_forward
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