Chapter 9 Test. Name: Class: Date: True/False Indicate whether the statement is true or false.

Size: px

Start display at page:

Download "Chapter 9 Test. Name: Class: Date: True/False Indicate whether the statement is true or false."

Phoebe McCarthy
5 years ago
Views:

1 Name: Class: Date: ID: A Chapter 9 Test True/False Indicate whether the statement is true or false. 1. Supply and demand are used to predict the incidence of a tax. 2. The two principles of taxation are the benefit principle and the ability-to-pay principle. 3. The marginal tax rate is the tax that applies to the next dollar of taxable income. 4. A person's payroll withholding statement summarizes federal, state, and local tax deductions. 5. Only one-quarter of the states run public lotteries to raise revenue. Multiple Choice Identify the choice that best completes the statement or answers the question. 6. The incidence of a tax can more effectively be shifted from the supplier to the consumer if a. the demand curve is inelastic. b. the demand curve is elastic. c. it is not a luxury tax or an excise tax. d. it is a property tax rather than an income tax. 7. The authority to levy a federal income tax comes from a. the Fifth Amendment. c. an act of Congress. b. the Sixteenth Amendment. d. the Bill of Rights. 8. Intergovernmental revenues are generally intended for a. education and public welfare. c. environmental cleanup. b. public transportation. d. parks and recreation. 9. The alternative minimum tax a. is an additional tax above and beyond the base rate. b. requires people to pay a minimum tax of 20 percent. c. allows a reduction in business taxes based on investment in equipment. d. allows larger-than-normal depreciation charges. 10. The flat tax a. would increase the need for individuals to hire tax accountants. b. includes incentives that promote positive economic behavior. c. allows too many loopholes. d. simplifies the tax process. 11. The incidence of a tax a. is a benefit tax. b. refers to those who bear the final burden of taxation. c. is a special tax on individuals with high income. d. is a tax paid by self-employed workers. 12. Ann earns $10,000 annually and pays a tax of $1,000. Jerome earns $60,000 during the same period and pays taxes of $20,000. The tax they both paid was a a. proportional tax. c. regressive tax. b. progressive tax. d. marginal tax. 1

2 Name: ID: A 13. FICA includes taxes to pay for a. Social Security and medicare. c. unemployment and medicare. b. Social Security and unemployment. d. medicare and worker's compensation. 14. The Taxpayer Relief Act of 1997 a. increased capital gains taxes. b. eliminated tax credits for families with children. c. changed marginal tax brackets to favor families. d. did little to benefit people without children or capital gains. 15. The flat tax a. shifts the burden of taxes to businesses. b. would complicate tax filing for most individuals. c. departs from ability-to-pay principle of taxation. d. is strictly proportional even when some income is exempted. 16. We ll cut your taxes is the most repeated campaign promise in the history of American politics. Yet somehow it is still considered visionary, worth a fight. Worth, indeed, a crusade. Why? It s in our blood. Historically, Americans have hated taxes, and not merely because we had to pay them. We ve hated taxes because we ve perceived them to be an infringement on our liberty and the source of big, powerful, and mischievous government. This was true from the beginning. It wasn t just taxation without representation that bothered us so much. It was taxation. Period. Source: The Washington Post, April 12, This passage compares the feelings of Americans toward taxation today to those same feelings around the time of the a. Crusades. c. American Revolution. b. Civil War. d. Great Depression. America can celebrate Tax Freedom Day on May 3, 2001, according to the Tax Foundation s annual calculation. That means that the nation s taxpayers have to work from January 1, 2001, to the 123rd day of the year before earning enough money to pay for government federal, state, and local and start spending money on themselves....individual income taxes represent the largest component of Americans tax bills... Source: America to Celebrate Tax Freedom Day, Tax Foundation, April 23, According to the passage, what is the meaning of Tax Freedom Day? a. You don t have to pay taxes for that day s labor. b. You don t have to pay income taxes on any earnings you make after that day. c. It is a national day of celebration after a tax cut took effect. d. By that day, you have earned enough to pay your income taxes for the year. 2

3 Name: ID: A Based on the graph, the per capita government receipts for 1980 were a. 500 times greater than in c. 500 times greater than in b. 5 times greater than in d. 5 times greater than in Tax Table for Single Individuals 2002 If the amount on Form 1040, line 39, is over... but not over... enter on Form 1040, line 40 of the amount over... $0 $6, % $0 $6,000 $27,050 $ % $6,000 $27,050 $65,550 $3, % $27,050 $65,550 $136,750 $14, % $65,550 $136,750 $297,300 $35, % $136,750 $297, $92, % $297,300 Source: Schedule X, IRS Individual Tax Table. What type of tax does the tax table in the illustration represent? a. flat c. regressive b. progressive d. proportional 3

4 Name: ID: A 20. Every year at this time, Congress discovers, with a great public show of dismay and indignation, the existence of the American tax code and the agency that administers it, the Internal Revenue Service. There are high-minded calls for abolishing the current tax system and replacing it... Around April 15, Congress likes to pretend that the tax code just sort of appeared or [just] happened. But the Constitution puts the burden of taxes solely, exclusively and entirely on Congress shoulders. The tax code is the way it is because a majority of Congress wants it that way. Source: How the Tax Code Got This Way, Denver Rocky Mountain News, April 16, Based on this passage, members of Congress probably like to pretend that the tax code just sort of appeared because they a. are not happy with the code. b. don t want voters to associate them with taxes. c. feel the Internal Revenue Service does not administer taxes fairly. d. cannot fix the unfairness in the tax code. Matching Match each statement with the correct item below. a. person who assigns value to property for tax purposes b. tax that imposes a higher percentage of taxation on lower incomes than on higher incomes c. annual report to the IRS summarizing income, deductions, and taxes withheld by employers d. tax levied on property left to an heir when a person dies e. exceptions in the tax law that allow some people to avoid paying taxes f. additional tax above and beyond the base rate g. federal health care program for senior citizens h. proportional tax on individual income after an income threshold has been reached i. tax paid by corporations on their income j. tax in which everyone pays the same percentage regardless of income 21. surcharge 22. proportional tax 23. corporate income tax 24. tax assessor 25. regressive tax 26. flat tax 27. tax return 4

5 ID: A Chapter 9 Test Answer Section TRUE/FALSE 1. ANS: T PTS: 1 DIF: Challenging REF: Learn more about this question in Economics Principles and Practices, page 225, and in the Reading epp.glencoe.com. NOT: Page ANS: T PTS: 1 DIF: Average REF: Learn more about this question in Economics Principles and Practices, pages , and in the Reading Essentials and Study Guide, Chapter 9, Section 1. For additional practice, complete Chapter 9, Section 1, of epp.glencoe.com. NOT: Pages ANS: T PTS: 1 DIF: Average epp.glencoe.com. NOT: Page ANS: T PTS: 1 DIF: Average REF: Learn more about this question in Economics Principles and Practices, page 242, and in the Reading Essentials and Study Guide, Chapter 9, Section 3. For additional practice, complete Chapter 9, Section 3, of epp.glencoe.com. NOT: Page ANS: F PTS: 1 DIF: Easy REF: Learn more about this question in Economics Principles and Practices, page 241, and in the Reading Essentials and Study Guide, Chapter 9, Section 3. For additional practice, complete Chapter 9, Section 3, of epp.glencoe.com. NOT: Page 241 MULTIPLE CHOICE 6. ANS: A PTS: 1 DIF: Challenging REF: Learn more about this question in Economics Principles and Practices, page 225, and in the Reading epp.glencoe.com. NOT: Page ANS: B PTS: 1 DIF: Average REF: Learn more about this question in Economics Principles and Practices, page 231, and in the Reading epp.glencoe.com. NOT: Page ANS: A PTS: 1 DIF: Average REF: Learn more about this question in Economics Principles and Practices, page 241, and in the Reading Essentials and Study Guide, Chapter 9, Section 3. For additional practice, complete Chapter 9, Section 3, of epp.glencoe.com. NOT: Page 241 1

6 ID: A 9. ANS: B PTS: 1 DIF: Challenging REF: Learn more about this question in Economics Principles and Practices, page 245, and in the Reading epp.glencoe.com. NOT: Page ANS: D PTS: 1 DIF: Average REF: Learn more about this question in Economics Principles and Practices, page 249, and in the Reading epp.glencoe.com. NOT: Page ANS: B PTS: 1 DIF: Average REF: Learn more about this question in Economics Principles and Practices, page 225, and in the Reading epp.glencoe.com. NOT: Page ANS: B PTS: 1 DIF: Challenging epp.glencoe.com. NOT: Page ANS: A PTS: 1 DIF: Average REF: Learn more about this question in Economics Principles and Practices, page 233, and in the Reading epp.glencoe.com. NOT: Page ANS: D PTS: 1 DIF: Challenging REF: Learn more about this question in Economics Principles and Practices, page 246, and in the Reading epp.glencoe.com. NOT: Page ANS: C PTS: 1 DIF: Challenging REF: Learn more about this question in Economics Principles and Practices, page 249, and in the Reading epp.glencoe.com. NOT: Page ANS: C PTS: 1 DIF: Easy REF: Learn more about this question in Economics Principles and Practices, page 231, and in the Reading epp.glencoe.com. MSC: Document Based Question NOT: Page ANS: D PTS: 1 DIF: Average REF: Learn more about this question in Economics Principles and Practices, page 223, and in the Reading epp.glencoe.com. MSC: Document Based Question NOT: Page 223 2

7 ID: A 18. ANS: B PTS: 1 DIF: Average REF: Learn more about this question in Economics Principles and Practices, page 224, and in the Reading epp.glencoe.com. MSC: Document Based Question NOT: Page ANS: B PTS: 1 DIF: Average epp.glencoe.com. MSC: Document Based Question NOT: Page ANS: B PTS: 1 DIF: Average REF: Learn more about this question in Economics Principles and Practices, page 250, and in the Reading epp.glencoe.com. MSC: Document Based Question NOT: Page 250 MATCHING 21. ANS: F PTS: 1 DIF: Average REF: Learn more about this question in Economics Principles and Practices, page 245, and in the Reading epp.glencoe.com. NOT: Page ANS: J PTS: 1 DIF: Average Essentials and Study Guide, Chapter 9, Section 1. For additional practice, complete Chapter 9, Section 21of epp.glencoe.com. NOT: Page ANS: I PTS: 1 DIF: Average REF: Learn more about this question in Economics Principles and Practices, page 235, and in the Reading epp.glencoe.com. NOT: Page ANS: A PTS: 1 DIF: Easy REF: Learn more about this question in Economics Principles and Practices, page 241, and in the Reading Essentials and Study Guide, Chapter 9, Section 3. For additional practice, complete Chapter 9, Section 3, of epp.glencoe.com. NOT: Page ANS: B PTS: 1 DIF: Average epp.glencoe.com. NOT: Page ANS: H PTS: 1 DIF: Average REF: Learn more about this question in Economics Principles and Practices, pages , and in the Reading Essentials and Study Guide, Chapter 9, Section 4. For additional practice, complete Chapter 9, Section 4, of epp.glencoe.com. NOT: Pages

8 ID: A 27. ANS: C PTS: 1 DIF: Easy REF: Learn more about this question in Economics Principles and Practices, page 232, and in the Reading epp.glencoe.com. NOT: Page 232 4

Econ Ch. 9 Practice Test II

Econ Ch. 9 Practice Test II Multiple Choice Identify the choice that best completes the statement or answers the question. 1. The incidence of a tax can more effectively be shifted from the supplier to