Econ Ch. 9 Practice Test II

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

CHAPTER 9 Sources of Government Revenue

Chapter 9 Sources of Government Revenue

Chapter Introduction. of Taxation. and Local Revenue Systems. and Reforms. Visual Summary

What Are Taxes? Chapter 14 Section Main Menu

14-1: How Taxes Work NOTES

4/5/2012. Chapter 16: Financing Government Section 1

Sources of Government Revenue. Taxes The Good the Bad and the Ugly

The Constitution gives Congress the power to tax.

AP Microeconomics Chapter 16 Outline

Sources of Government Revenue. Taxes The Good the Bad and the Ugly

Chapter 14 Section 2: Federal Taxes

How Government Collects. While governments receive revenue from a variety of sources, the most important source is taxes.

Chapter 6. Paying Taxes Pearson Education, Inc. All rights reserved

Personal Finance G

A Primer on New Mexico s Tax System

Unit 6 The Role of Government in the Economy

HOW MUCH SHOULD THE FOLLOWING INDIVIDUALS PAY IN TAXES?

Chapter 14: Taxes and Government Spending Section 1

INTRODUCTION TAXES: EQUITY VS. EFFICIENCY WEALTH PERSONAL INCOME THE LORENZ CURVE THE SIZE DISTRIBUTION OF INCOME

1. STUDENTS WILL BE ABLE TO DEFINE WHAT A TAX IS AND EXPLAIN WHY WE MUST HAVE TAXES

EQ: What is Price Elasticity of Supply?

Unit #3: The Government and the Economy

The BIG Idea UNIT 3 CHAPTER. All levels of government use tax revenue to provide essential goods and services.

Sample Exam Questions/Chapter 7

CH 8. Name: Class: Date: Multiple Choice Identify the choice that best completes the statement or answers the question.

During fiscal year 2004, the federal government

Introduction. Income Tax: percentage of your income collected by the government to fund its services and programs

Chapter 12 TAXES AND TAX POLICY Principles of Economics in Context (Goodwin et al.)

Federal, State, and Local Taxes in NYS. Counties TAXES IN NYS. April Fire districts 1% Villages 2% Library 1% Towns 7% Cities (w/nyc) 18%

CIE Economics AS-level

Understanding Taxes. and understanding your paycheck!

Funding the Public Sector

Recitation #6 Week 02/15/2009 to 02/21/2009. Chapter 7 - Taxes

Taxes and Spending. Mostly Agree

ECON 1100 Global Economics (Fall 2013) The Distribution Function of Government portions for Exam 4

Most non-farm jobs in Texas are in the general area of a. manufacturing.

Chapter 14 Section 1: What are taxes?

14.1 Public Goods and Taxation 14.2 Federal, State, and Local Budgets 14.3 Economics of Public Choice

HOW SHOULD GOVERNMENTS STRUCTURE THE TAX SYSTEM?

Unit 1 Test Review Chapters 1 & 2 Introduction to Economics

Doing business in Sweden.

Martin A. Darocha, CPA PAYROLL TAX TOOLKIT January 2018

MICROECONOMICS - CLUTCH CH. 6 - INTRODUCTION TO TAXES AND SUBSIDIES

IRS Hot Topics 2018 TN Statewide APA Conference

Tuesday, April 15, 2014

Why are there taxes? Main reason: to raise revenue for the government

Chapter 14: Taxes and Government Spending Section 4

Public Finance: The Economics of Taxation. The Economics of Taxation. Taxes: Basic Concepts

Chapter 6. Introduction. Learning Objectives. Funding the Public Sector. Distinguish between average tax rates and marginal tax rates

Chapter 1 Introduction to Federal Taxation and Understanding the Federal Tax Law

Taxes Primer September 27, 2013

2013 Tax Brackets Standard Tax Brackets Single Marginal Tax Bracket. Taxable Income 10% <$ % $ ,250 25% $36,250-87,850

Taxation-Overview (Chapter 18)

PERSONAL INCOME TAXES

Our Tax System Revealed. Lee R. Nackman, Ph.D. October 24, 2018

Public Economics (ECON 131) Section #4: Labor Income Taxation

CASE FAIR OSTER PRINCIPLES OF MICROECONOMICS E L E V E N T H E D I T I O N. PEARSON 2014 Pearson Education, Inc.

STATE AND LOCAL TAXES AND SPENDING

CHAPTER 17: PUBLIC CHOICE THEORY AND THE ECONOMICS OF TAXATION

A tax is:,, and taxes account for. For many workers, are their single annual. expense, even more than, shelter, transportation,

The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

At the end of Class 20, you will be able to answer the following:

Learning Objectives. Chapter 6. Funding the Public Sector. Introduction

The theory of taxation (Stiglitz ch. 17, 18, 19; Gruber ch.19, 20; Rosen ch.13,14,15)

Would the Senate Democrats proposed excise tax on highcost employer-paid health insurance benefits be progressive?

How Progressive is the U.S. (Federal) Tax System?

2011 Tax Guide. What You Need to Know About the New Rules

LESSON Recording A Payroll. CENTURY 21 ACCOUNTING Thomson/South-Western

AGENDA Thurs 1/7/16 QOD #2: Fiscalville Taxes HW Review (CH16 Q #1-6) Ch 16: Government Finance Partner Practice (Handout/P #3) Spring Syllabus

2013 W-2 PREPARATION

The Congress, the President, and the Budget: The Politics of Taxing and Spending

Chapter 12. The Design of the Tax System. Introduction. Introduction. In this chapter, look for the answers to these questions:

Withholding, Estimated Payments & Payroll Taxes

NAME: CLASS PERIOD: What Are All These Deductions from My Paycheck?

CHAPTER 12 PREPARING PAYROLL RECORDS

is a concept that relates the responsiveness (or sensitivity) of one variable to a change in another variable. Elasticity of A with respect to B = %

PAGE ONE Economics. Income Tax: Facts and Filings. Jeannette N. Bennett, Senior Economic Education Specialist. Introduction

Section 1: Guided Reading and Review Gross Domestic Product

Refer to Scenario 19.1 below to answer the questions that follow.

Terms. Write down as many payroll terms or payroll taxes that you can think of in 2 minutes. Ready, Set, Go!

NAME: CLASS PERIOD: What Are All These Deductions from My Paycheck?

Application of Retroactive Increase in Transit Benefits

How Progressive is the U.S. (Federal) Tax System?

UNIT 3B KEYNESIAN ECONOMICS AND FISCAL POLICY THE ROLE OF GOVERNMENT IN THE ECONOMY

Figure a. The equilibrium price of Frisbees is $8 and the equilibrium quantity is six million Frisbees.

POLICY REPORT The Iowa Policy Project

CHAPTER 1 Introduction to Taxation

Chapter 01 Introduction to Taxation, the Income Tax Formula, and Form 1040EZ

Flat Tax vs. Fair Tax

Profit Sense YEAR-END PLANNING INDIVIDUALS. In This Issue

1995 Minnesota Tax Incidence Study

TAX INITIATIVES TAX OPTION GRADUATED FLAT COMPETITIVE

Reading Essentials and Study Guide

2) Knowledge of individual income taxes is crucial to sound financial planning. Answer: TRUE Diff: 1 Question Status: Previous edition

Issue Brief for Congress

Federal Tax Reform Idaho Impact

Chapter 12: Design of the Tax System. Historical Context

Accounting 1. Lesson Plan. Topic: Preparing Payroll Records Unit: 3 Chapter 14

CHILDREN EXEMPTIONS, CREDITS AND INCOME SHIFTING TECHNIQUES

Transcription:

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 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 tax. 2. The authority to levy a federal tax comes from a. the Fifth Amendment. c. an act of Congress. b. the Sixteenth Amendment. d. the Bill of Rights. 3. Intergovernmental revenues are generally intended for a. education and public welfare. c. environmental cleanup. b. public transportation. d. parks and recreation. 4. 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. 5. 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. 6. Types of Taxes Type of tax Income of $10,000 Income of $100,000 Summary Proportional (City tax) $97.50 or 0.975% of $975.00 or 0.975% of As goes up, the percentage of paid in taxes stays the Progressive (Federal tax) Regressive (State sales tax) $1,000 paid in taxes, or 10% of total $5,000 in food and clothing purchases, taxed at 4% for a total tax of $200 or 2% of $25,000 paid in taxes, or 25% of total $20,000 in food and clothing purchases, taxed at 4% for total tax of $800 or 0.8% of same. As goes up, the percentage of paid in taxes goes up. As goes up, the percentage of paid in taxes goes down. Medicare tax is 1.45 percent of, with no limit on the amount of taxed. This is an example of which type of tax? a. state sales tax c. progressive tax

b. proportional tax d. regressive tax 7. 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. d. is a tax paid by self-employed workers. 8. 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. 9. FICA includes taxes to pay for a. Social Security and Medicare. b. Social Security and unemployment. c. unemployment and Medicare. d. Medicare and worker's compensation. 10. 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 wage earners in the lowest 20 percent. 11. 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. would allow for more deductions and exemptions when filing an tax return. 12. Types of Taxes Type of tax Income of $10,000 Income of $100,000 Summary Proportional (City tax) $97.50 or 0.975% of $975.00 or 0.975% of As goes up, the percentage of paid in taxes stays the Progressive (Federal tax) Regressive (State sales tax) $1,000 paid in taxes, or 10% of total $5,000 in food and clothing purchases, taxed at 4% for a total tax of $200 or 2% of $25,000 paid in taxes, or 25% of total $20,000 in food and clothing purchases, taxed at 4% for total tax of $800 or 0.8% of same. As goes up, the percentage of paid in taxes goes up. As goes up, the percentage of paid in taxes goes down. Under which type of tax do individuals with higher s pay a smaller percentage than do those with lower s? a. progressive tax c. proportional tax b. city tax d. regressive tax

13. Based on the graph, the total government receipts per capita for 2006 were a. 30 times greater than in 1964. c. 30 times greater than in 1974. b. 3 times greater than in 1964. d. 3 times greater than in 1974. 14. In panel A of the graph, how much of the cost of the tax did the producer absorb? a. $15.00 c. 60 cents b. $15.60 d. 40 cents

15. In panel B of the graph, how much of the cost of the tax did the producer pass on to the consumer? a. 90 cents c. $15.90 b. 10 cents d. $15.00 16. Tax Table for Single Individuals 2007 If your taxable is: But not The tax is: of the amount Over... over... over... $0 $7,825 ----------- 10% $0 $7,825 $31,850 $782.50 + 15% $7,825 $31,850 $77,100 $4,386.25 + 25% $31,850 $77,100 $160,850 $15,698.75 + 28% $77,100 $160,850 $349,700 $39,148.75 + 33% $160,850 $349,700 ------------ $101,469.25 + 35% $349,700 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 Matching Match each statement with the correct item below. a. reduction in business taxes based on investment in new plants and equipment b. federal tax on people's earnings c. system requiring employers to deduct taxes from employees' paychecks and send them directly to the IRS d. profits from the sale of an asset held for 12 months e. tax that imposes a higher percentage rate of taxation on people with higher s than on people with lower s f. Medicare and Social Security g. tax on tangible and intangible possessions, such as real estate, buildings, furniture, stocks, bonds, and bank accounts h. relatively high tax on socially undesirable products, such as tobacco i. tax on the manufacture and sale of selected items j. upward revision of the tax brackets to compensate for the effects of inflation 17. payroll withholding system 18. sin tax 19. property tax 20. individual tax 21. indexing

22. investment tax credit 23. payroll taxes 24. progressive tax 25. capital gains 26. excise tax 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 s than on higher s c. annual report to the IRS summarizing total, deductions, and taxes withheld by employers d. tax on the transfer of property when a person dies e. exceptions in the tax law that allow some people to avoid paying taxes f. tax on the value added at every stage of the production process g. federal health-care program for senior citizens h. proportional tax on individual after an threshold has been reached i. tax paid by corporations on their profits j. tax in which everyone pays the same percentage regardless of 27. tax loophole 28. Medicare 29. value-added tax (VAT) 30. proportional tax 31. corporate tax 32. tax assessor 33. regressive tax 34. flat tax 35. tax return 36. estate tax

Econ Ch. 9 Practice Test II Answer Section MULTIPLE CHOICE 1. ANS: A PTS: 1 DIF: Challenging REF: Page 231 NOT: Learn more about this question in Economics Principles and Practices, page 231, and in the Reading 2. ANS: B PTS: 1 DIF: Average REF: Page 238 NOT: Learn more about this question in Economics Principles and Practices, page 238, and in the Reading 3. ANS: A PTS: 1 DIF: Average REF: Page 242 NOT: Learn more about this question in Economics Principles and Practices, page 242, and in the Reading 4. ANS: B PTS: 1 DIF: Challenging REF: Page 249 NOT: Learn more about this question in Economics Principles and Practices, page 249, and in the Reading 5. ANS: D PTS: 1 DIF: Average REF: Page 251 NOT: Learn more about this question in Economics Principles and Practices, page 251, and in the Reading 6. ANS: B PTS: 1 DIF: Average REF: Pages 235-236 NOT: Learn more about this question in Economics Principles and Practices, pages 235-236, and in the Reading Essentials and Notetaking Guide, Chapter 9, Section 1. For additional practice, visit this book's Online 7. ANS: B PTS: 1 DIF: Average REF: Page 231 NOT: Learn more about this question in Economics Principles and Practices, page 231, and in the Reading 8. ANS: B PTS: 1 DIF: Challenging REF: Page 235 NOT: Learn more about this question in Economics Principles and Practices, page 235, and in the Reading 9. ANS: A PTS: 1 DIF: Average REF: Page 239 NOT: Learn more about this question in Economics Principles and Practices, page 239, and in the Reading 10. ANS: D PTS: 1 DIF: Challenging REF: Page 250 NOT: Learn more about this question in Economics Principles and Practices, page 250, and in the Reading 11. ANS: C PTS: 1 DIF: Challenging REF: Page 251 NOT: Learn more about this question in Economics Principles and Practices, page 251, and in the Reading

12. ANS: D PTS: 1 DIF: Average REF: Pages 235-236 NOT: Learn more about this question in Economics Principles and Practices, pages 235-236, and in the Reading Essentials and Notetaking Guide, Chapter 9, Section 1. For additional practice, visit this book's Online 13. ANS: B PTS: 1 DIF: Average REF: Page 250 NOT: Learn more about this question in Economics Principles and Practices, page 250, and in the Reading 14. ANS: D PTS: 1 DIF: Average REF: Page 231 NOT: Learn more about this question in Economics Principles and Practices, page 231, and in the Reading 15. ANS: A PTS: 1 DIF: Average REF: Page 231 NOT: Learn more about this question in Economics Principles and Practices, page 231, and in the Reading 16. ANS: B PTS: 1 DIF: Average REF: Pages 235-236 NOT: Learn more about this question in Economics Principles and Practices, pages 235-236, and in the Reading Essentials and Notetaking Guide, Chapter 9, Section 1. For additional practice, visit this book's Online MATCHING 17. ANS: C PTS: 1 DIF: Average REF: Page 239 NOT: Learn more about this question in Economics Principles and Practices, page 239, and in the Reading 18. ANS: H PTS: 1 DIF: Easy REF: Page 230 NOT: Learn more about this question in Economics Principles and Practices, page 230, and in the Reading 19. ANS: G PTS: 1 DIF: Average REF: Page 244 NOT: Learn more about this question in Economics Principles and Practices, page 244, and in the Reading 20. ANS: B PTS: 1 DIF: Easy REF: Page 232 NOT: Learn more about this question in Economics Principles and Practices, page 232, and in the Reading 21. ANS: J PTS: 1 DIF: Average REF: Page 239 NOT: Learn more about this question in Economics Principles and Practices, page 239, and in the Reading

22. ANS: A PTS: 1 DIF: Average REF: Page 249 NOT: Learn more about this question in Economics Principles and Practices, page 249, and in the Reading 23. ANS: F PTS: 1 DIF: Average REF: Page 239 NOT: Learn more about this question in Economics Principles and Practices, page 239, and in the Reading 24. ANS: E PTS: 1 DIF: Average REF: Page 235 NOT: Learn more about this question in Economics Principles and Practices, page 235, and in the Reading 25. ANS: D PTS: 1 DIF: Average REF: Page 250 NOT: Learn more about this question in Economics Principles and Practices, page 250, and in the Reading 26. ANS: I PTS: 1 DIF: Average REF: Page 240 NOT: Learn more about this question in Economics Principles and Practices, page 240, and in the Reading 27. ANS: E PTS: 1 DIF: Easy REF: Page 232 NOT: Learn more about this question in Economics Principles and Practices, page 232, and in the Reading 28. ANS: G PTS: 1 DIF: Easy REF: Page 235 NOT: Learn more about this question in Economics Principles and Practices, page 235, and in the Reading 29. ANS: F PTS: 1 DIF: Average REF: Page 252 NOT: Learn more about this question in Economics Principles and Practices, page 252, and in the Reading 30. ANS: J PTS: 1 DIF: Average REF: Page 235 NOT: Learn more about this question in Economics Principles and Practices, page 235, and in the Reading 31. ANS: I PTS: 1 DIF: Average REF: Page 240 NOT: Learn more about this question in Economics Principles and Practices, page 240, and in the Reading 32. ANS: A PTS: 1 DIF: Easy REF: Page 244 NOT: Learn more about this question in Economics Principles and Practices, page 244, and in the Reading 33. ANS: B PTS: 1 DIF: Average REF: Page 236 NOT: Learn more about this question in Economics Principles and Practices, page 236, and in the Reading

34. ANS: H PTS: 1 DIF: Average REF: Page 251 NOT: Learn more about this question in Economics Principles and Practices, page 251, and in the Reading 35. ANS: C PTS: 1 DIF: Easy REF: Page 233 NOT: Learn more about this question in Economics Principles and Practices, page 233, and in the Reading 36. ANS: D PTS: 1 DIF: Average REF: Page 241 NOT: Learn more about this question in Economics Principles and Practices, page 241, and in the Reading

2024 © financedocbox.com Privacy Policy | Terms of Service | Feedback