Question : 44) Since lower-income people spend a larger proportion of their : 1388021

Economics

44) Since lower-income people spend a larger proportion of their incomes on groceries than do higher-income people, if grocery stores were required by law to charge a 10-cent fee for disposable bags, this fee could be considered

A) a proportional tax.

B) a progressive tax.

C) a regressive tax.

D) an income tax.

45) In reference to the federal income tax system, a tax bracket is

A) the estimated amount of federal income tax firms withhold from their employees’ paychecks.

B) the formula the federal government uses to determine the dollar amount of the personal exemption and the amounts taxpayers are allowed for deductions from their incomes.

C) used to determine the average tax rate.

D) the income range within which a tax rate applies.

46) Which of the following is an example of a federal mandate?

A) an excise tax

B) the Medicaid program

C) the personal tax exemption

D) the Food and Drug Administration (FDA)

47) A proportional tax is a tax for which people with lower incomes

A) pay a higher percentage of their incomes in tax than do people with higher incomes.

B) pay a lower percentage of their incomes in tax than do people with higher incomes.

C) pay the same percentage of their incomes in tax as do people with higher incomes.

D) pay the same amount of taxes as people with higher incomes pay.

48) In the United States, taxpayers are allowed to exclude from taxation a certain amount of income, called

A) the personal income exclusion.

B) the income allowance.

C) the income tax credit.

D) the personal exemption.

Table 18-7

Taxable Income

Tax Payments

$10,000

$1,000

12,000

1,240

16,000

1,780

22,000

2,740

Table 18-7 shows the amount of taxes paid on various levels of income.

49) Refer to Table 18-7. The tax system is

A) progressive throughout all levels of income.

B) proportional throughout all levels of income.

C) regressive throughout all levels of income.

D) progressive between $10,000 and $12,000 of income and regressive between $16,000 and $22,000.

50) According to projections for 2013 by the Tax Policy Center, the 20 percent of U.S. taxpayers who make the highest incomes

A) use loopholes and tax exemptions to reduce their share of federal income taxes to less than 20 percent.

B) pay almost 68 percent of federal income taxes.

C) pay about 92 percent of federal income taxes but only about 20 percent of Social Security and Medicare payroll taxes.

D) pay more in excise and other taxes than they pay in Social Security and Medicare payroll taxes.

Table 18-8

Taxable Income

Tax Payments

$10,000

$1,000

12,000

1,080

16,000

1,360

22,000

1,760

Table 18-8 shows the amount of taxes paid on various levels of income.

51) Refer to Table 18-8. The tax system is

A) progressive throughout all levels of income.

B) proportional throughout all levels of income.

C) regressive throughout all levels of income.

D) progressive between $10,000 and $12,000 of income and regressive between $12,000 and $22,000.

52) In the United States, the federal income tax is an example of a

A) progressive tax.

B) regressive tax.

C) proportional tax.

D) flat tax.

53) The average tax rate is calculated as

A) total income divided by the total tax paid.

B) the change in total tax paid divided by the change in income.

C) total tax paid divided by total income.

D) the change in income divided by the change in total tax paid.

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July 1, 2023

61.When there is a shortage in a market, prices are likely to:

A. Fall because buyers do not wish to buy as much as sellers want to sell.

B. Rise because some buyers will offer to pay a higher price.

C. Fall because sellers are likely to reduce their production if prices rise.

D. Rise because the government will put a price ceiling in place.

62.If a market shortage exists:

A. The invisible hand will work to reduce the price.

B. The only solution is for the government to raise the price.

C. Producers will compete for customers by reducing prices.

D. Consumers will compete for the product by offering to pay more.

63.A market surplus occurs when:

A. People cannot buy the amount of goods and services that they are willing and able to buy.

B. The price is less than the equilibrium price.

C. The quantity supplied exceeds the quantity demanded at a given price.

D. There is a price ceiling.

64.When there is a surplus in a market, prices are likely to fall because:

A. Buyers do not wish to buy as much as sellers want to sell.

B. Some buyers will offer to pay a higher price, initiating a move up the supply curve.

C. Sellers are likely to increase their production.

D. Buyers will wait for the government to establish a price floor.

65.If a market surplus exists:

A. The only resolution is for the government to set the price.

B. Consumers will compete for the product buy offering to pay more.

C. Producers will compete for customers by reducing prices.

D. The equilibrium price is equal to the price ceiling.

66.If demand is constant, a decrease in the supply of gasoline will cause the equilibrium price:

A. To rise and quantity to fall.

B. And quantity both to rise.

C. To fall and quantity to rise.

D. And quantity both to fall.

67.If demand is constant, a leftward shift in the supply curve will result in:

A. A decrease in equilibrium quantity and a lower equilibrium price.

B. An increase in equilibrium quantity and a lower equilibrium price.

C. A decrease in equilibrium quantity and a higher equilibrium price.

D. An increase in equilibrium quantity and a higher equilibrium price.

68.The price of chocolate candy bars rises. This could be due to:

A. A decrease in the wage rate paid to workers in the candy bar factories.

B. A decrease in the cost of chocolate, which is used to produce candy bars.

C. A subsidy by the federal government for the producers of chocolate candy bars.

D. A decrease in the number of chocolate candy bar producers.

69.If demand is unchanged, a rightward shift in the supply curve for plasma TVs will cause:

A. A decrease in equilibrium quantity and a higher equilibrium price.

B. An increase in equilibrium quantity and a higher equilibrium price.

C. An increase in equilibrium quantity and a lower equilibrium price.

D. A decrease in equilibrium quantity and a lower equilibrium price.

70.Which of the following would cause a decrease in the price of automobiles?

A. A technological advance in automobile manufacturing.

B. An increase in the wages paid to automobile assembly line workers.

C. A decrease in the cost of gasoline.

D. An increase in the number of buyers.