Taxation And Public Expenditure
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- Economic Issues and ConceptsEconomic Theories,Data,and GraphsDemand,Supply,and PriceElasticityPrice Controls and Market EfficiencyConsumer BehaviourProducers in the Short RunProducers in the Long RunCompetitive MarketsMonopoly,cartels,and Price DiscriminationImperfect Competition and Strategic BehaviourEconomic Efficiency and Public PolicyHow Factor Markets WorkLabour Markets and Income InequalityInterest Rates and the Capital MarketMarket Failures and Government InterventionThe Economics of Environmental ProtectionTaxation and Public ExpenditureWhat Macroeconomics Is All AboutThe Measurement of National IncomeThe Simplest Short-Run Macro ModelAdding Government and Trade to the Simple Macro ModelOutput and Prices in the Short RunFrom the Short Run to the Long Run: The Adjustment of Factor PricesLong-Run Economic GrowthMoney and BankingMoney,Interest Rates,and Economic ActivityMonetary Policy in CanadaInflation and DisinflationUnemployment Fluctuations and the NairuGovernment Debt and DeficitsThe Gains From International TradeTrade PolicyExchange Rates and the Balance of Payments
Question 1
Free
Multiple Choice
A tax that takes a higher percentage of income as income rises is called a(n)
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proportional tax.
regressive tax.
progressive tax.
excise tax.
value-added tax.
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Question 2
Free
Multiple Choice
The sometimes proposed "flat tax," such as one that takes 15% of income at all levels of income,is an example of a(n)
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proportional tax.
regressive tax.
progressive tax.
excise tax.
value-added tax.
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Question 3
Free
Multiple Choice
Which of the following statements suggests that property taxes might be progressive?
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The proportion of income spent on housing tends to decline as income rises.
Higher-income people live in more expensive houses than do low-income people.
A large part of the property tax is shifted to renters,who typically have lower incomes than owners.
Inner city neighbourhoods often have higher property taxes than do the more affluent suburbs.
Elderly pensioners often live in their family homes after children have left.
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Question 4
Free
Multiple Choice
A mandatory health-insurance premium of a given amount payable by all residents is an example of a(n)
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proportional tax.
regressive tax.
progressive tax.
value-added tax.
invisible tax.
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Question 5
Free
Multiple Choice
An income tax is progressive if,as income increases,
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its average tax rate is increasing.
its marginal tax rate is falling.
its average tax rate is falling,but total taxes are increasing.
its average tax rate and marginal tax rate are constant while income is increasing.
its average tax rate is falling,but the marginal tax rate is increasing.
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Question 6
Multiple Choice
A tax that takes a smaller percentage of income as the income increases is called
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a regressive tax.
a progressive tax.
a proportional tax.
an efficient tax.
an excise tax.
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Question 7
Multiple Choice
Which of the following is required to achieve progressivity for a particular tax?
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a marginal tax rate equal to the average tax rate (implying that the average tax rate is rising with income)
a marginal tax rate equal to the average tax rate (implying that the average tax rate is falling with income)
an average tax rate above the marginal tax rate (implying that the average tax rate is falling with income)
a marginal tax rate above the average tax rate (implying that the average tax rate is rising with income)
a constant tax rate for all incomes
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Question 8
Multiple Choice
Consider an income-tax system that requires all individuals to pay exactly 3% of their income.This income-tax system is
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proportional.
progressive,because the higher the individual's income,the greater the amount of tax paid.
regressive,since 3% is harder to pay for a low-income taxpayer.
fair,since everyone pays the same amount.
a lump-sum system,sometimes called a poll tax.
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Question 9
Multiple Choice
Suppose taxes are levied in the following way.No individual pays any taxes on the first $10 000 of their income.And for every dollar earned above this amount,all individuals pay 20% in taxes.This income-tax system is
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regressive.
progressive.
indexed.
proportional.
an accurate description of the Canadian system.
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Question 10
Multiple Choice
Suppose taxes are levied in the following way.All individuals pay a tax equal to $2000 no matter what income they earn.In addition,all individuals pay 20% of all their earned income in taxes.This income-tax system is
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regressive.
progressive.
indexed.
proportional.
an accurate description of the Canadian system.
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Question 11
Multiple Choice
If a tax system contains some important taxes that are regressive,substantial progressivity in other taxes would be required in order to achieve
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proportionality in the overall tax system.
a negative income tax.
a flat-rate tax.
equity in the overall tax system.
efficiency in the overall tax system.
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Question 12
Multiple Choice
Suppose an income tax is levied in the following way: All individuals pay 10% of their income up to an income of $30 000.On all income above $30 000,individuals pay 20% of their income.Such a tax is
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regressive.
progressive.
indexed.
proportional.
unrealistic.
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Question 13
Multiple Choice
A marginal tax rate of 47% on taxable income over $150 000 implies that
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an individual with this taxable income would pay $70 000 in income tax.
the average tax rate is also 47%.
the income tax payable on any dollar earned above $150 000 is 47 cents.
the tax system is progressive.
the tax system is horizontally equitable.
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Question 14
Multiple Choice
An example of a regressive tax in Canada is
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any one of the provincial sales taxes.
the federal income tax.
the corporate income tax.
the provincial income taxes.
the typical property taxes in Canadian cities and towns.
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Question 15
Multiple Choice
Some important taxes are regressive,such as provincial sales taxes.In an effort to achieve proportionality in the overall tax system it is therefore necessary to impose
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substantial progressivity in income taxes.
a negative income tax.
a flat-rate tax.
consumption taxation.
efficiency in the tax system.
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Question 16
Multiple Choice
FIGURE 18-1
-Refer to Figure 18-1.A regressive tax is illustrated by curve(s)
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A and B.
B and C.
C and D.
A only.
C only.
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Question 17
Multiple Choice
FIGURE 18-1
-Refer to Figure 18-1.A progressive tax is illustrated by curve(s)
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A and B.
B and C.
C and D.
A only.
C only.
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Question 18
Multiple Choice
FIGURE 18-1
-Refer to Figure 18-1.A proportional tax is illustrated by curve(s)
Choose correct answer/s
A and B.
B and C.
C and D.
B only.
D only.
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Question 19
Multiple Choice
FIGURE 18-1
-Refer to Figure 18-1.A lump-sum tax is illustrated by curve(s)
Choose correct answer/s
A and B.
B and C.
C and D.
B only.
D only.
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Question 20
Multiple Choice
Tax and other revenues collected by all levels of government amounted to approximately what proportion of Canada's Gross Domestic Product (GDP)in 2014?
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8%
18%
28%
38%
48%
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