Question :
21) A negative income tax
A) a regressive income tax.
B) currently : 1238946
21) A negative income tax
A) is a regressive income tax.
B) is currently in use in the United States.
C) makes the redistribution of income efficient.
D) provides every household with a guaranteed minimum annual income.
E) cannot be enacted in the United States because it is unconstitutional.
22) With a negative income tax that has a $10,000 guaranteed income and a 25 percent tax rate, a household that has a market income of $4,000 has a total income of
A) $15,000.
B) $14,000.
C) $13,000.
D) $10,000.
E) $7,000.
23) Which of the following is a way income is redistributed in the United States?
i.subsidizing services
ii.income taxes
iii.income maintenance programs
A) i only
B) ii only
C) ii and iii
D) i and iii
E) i, ii, and iii
24) If you attended public school in your hometown, you have received ________ because the government has provided ________.
A) a subsidized service; a service below the cost of its production
B) a TANF grant; you a free education
C) the benefit of a negative tax; you an education without having to pay taxes
D) a subsidized service; a free education using a negative income tax
E) a utilitarian benefit; an education to help promote equality
25) A ________ tax is one that taxes income at an average rate that increases with the level of income.
A) regressive
B) progressive
C) flat
D) consumption
E) proportional
26) Of the following types of income tax systems, the one that provides the greatest amount of redistribution from the rich to the poor is a
A) progressive income tax.
B) proportional income tax.
C) regressive income tax.
D) flat-rate income tax.
E) money-income tax.
27) The three major types of income maintenance programs are
A) Social Security programs, unemployment compensation, and welfare programs.
B) food stamps, unemployment compensation, and agricultural price supports.
C) student loans, rent control, and welfare programs.
D) corporate welfare, minimum wages, and affirmative action laws.
E) minimum wages, food stamps, and student loans.
28) A household’s income earned from the markets for factors of production and with no government redistribution is
A) money income.
B) welfare.
C) market income.
D) exploitative income.
E) factored income.
29) When government redistributes income, one dollar collected from a rich person translates into ________ received by a poor person.
A) exactly one dollar
B) less than one dollar
C) more than one dollar
D) zero dollars
E) either exactly one dollar or, with some programs, more than one dollar
30) With a negative income tax that has a $10,000 guaranteed minimum income and a 25 percent tax rate, a household that has earned income of $16,000 has a total income of
A) $16,000.
B) $22,000.
C) $26,000.
D) $24,000.
E) $10,000.
31) The ________ explains that the redistribution of income occurs because ________.
A) median voter theory; a political party is more likely to retain power by enacting laws that make its supporters as well off as possible
B) utilitarian theory; the big tradeoff favors efficiency
C) excess burden theory; utilitarianism favors equality over efficiency
D) Lorenz curve; the lowest quintile of households receives the smallest level of benefits
E) progressive tax theory; higher taxes are best at equalizing income
32) The median voter theory predicts income redistribution ________ occur because the median voter ________.
A) will; wants to be made as well off as possible
B) will; will only vote for the political party that supports a utilitarian proposal
C) will not; has his/her disposable income reduced to inefficient levels
D) will not; faces the big tradeoff
E) will not; usually favors a negative income tax
