Economics Taxation

Consider the introduction of a $20 per unit tax in this market. Which areas represent the loss to consumer AND producer surplus as a result of this tax

• k + f

• j + g

• k + j

• k + f + j + g

If a $6 per unit tax is introduced in this market, then the price that consumers pay will equal ____ and the price that producers receive net of the tax will equal _____.

• $10; $4

• $9; $3

• $8; $2

• $7; $1

The incidence of tax refers to

• The level and rate of taxation

• Who ultimately pays the tax

• The growth of taxation

• The way in which tax is collected

Consider the introduction of a $20 per unit tax in this market. Which areas represent the gain in government revenue as a result of this tax?

• k + f.

• j + g.

• k + j.

• k + f + j + g.

What type of tax does the image illustrate?

• proportional

• flat

• regressive

• progressive

Which type of tax increases as income increases?

• Regressive tax

• Proportional tax

• Progressive tax

• None of the above

In this tax structure a single tax rate (percentage) is applied to all levels of income, however, a smaller percentage of income is used to cover the tax as your income increases. An example of this would be sales tax or even tolls for roads/bridges.

• Progressive Tax

• Regressive Tax

• Proportional or Flat Tax

• Excise Tax

The federal income tax is a

• regressive tax

• flat tax

• progressive tax

• personal choice

Which type of tax is based on a person's earnings?

• Corporate income tax

• Sales tax

• Property tax

• Individual income tax

The terms proportional, regressive, and progressive refer to _____

• principles of taxation

• criteria for effective taxes

• types of taxes

• benefit principle