Question : 21) If taxes collected the basis of ability-to-pay and there : 1239161

Economics

21) If taxes are collected on the basis of ability-to-pay and there are two taxpayers with the same income who also are identical in all other respects, which of the following is correct?

A) Vertical equity is impossible between these two taxpayers.

B) Vertical equity exists.

C) Horizontal equity exists.

D) The tax must be proportional.

E) The fair-incidence principle is potentially being violated.

22) Suppose that Anthony and Melissa both earn $30,000 and are otherwise the same. If they both pay 10 percent of their income as taxes, then

A) the income tax is regressive.

B) the benefits principle of fairness has been achieved.

C) horizontal equity has been achieved.

D) proportional equity has been achieved.

E) vertical equity has been achieved.

23) Vertical equity is the idea that

A) taxpayers with a greater ability to pay should bear a greater share of the taxes.

B) people should pay taxes equal to the benefits they receive from public benefits.

C) as income rises, taxes should be efficient, not equitable.

D) the marriage tax is equitable.

E) taxes must be fairest to people with the largest incomes.

24) Progressive taxes can be justified as fair based on which of the following?

A) horizontal equity

B) vertical equity

C) benefits received

D) index of fairness principle

E) None of the above answers is correct.

25) The assertion that Bill Gates and Paris Hilton should pay more taxes than Average Joe best represents the idea of

A) horizontal equity.

B) vertical equity.

C) the benefits principle of tax fairness.

D) fairness principle of taxation.

E) benefits paid principle of taxation.

26) The marriage tax problem in the United States is a

A) vertical equity problem because married people pay less than similar single people.

B) horizontal equity problem because married people pay more than similar single people.

C) benefits principle problem because who benefit more pay less.

D) vertical equity problem because married people pay more than similar single people.

E) horizontal equity problem because married people pay less than similar single people.

27) The marriage tax problem in the U.S. tax code is a problem involving which of the following?

A) benefits received principle

B) the ability-to-pay principle

C) a conflict between horizontal and vertical equity

D) vertical equity

E) incidence of fairness principle

28) Trying to achieve vertical equity by using a progressive income tax structure can create problems with which of the following?

A) horizontal equity

B) vertical equity

C) benefits received

D) tax incidence

E) regressive equality

29) Which of the following taxes best illustrates the benefits principle of taxation?

A) sales tax on clothing used to fund food stamps

B) state income tax used to fund state universities

C) Medicare tax imposed on all workers used to fund medical care for the elderly

D) gasoline tax used to fund road repairs

E) federal income tax used to fund NASA spending

30) The proposition that people should pay taxes according to how easily they can bear the burden is known as the ________ principle.

A) regressive tax

B) benefits

C) ability-to-pay

D) fairness

E) incidence of fairness

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July 1, 2023

9.1 The United States in the International Economy

1) Following the tariff imposed on Chinese tires, some businesspeople correctly argued that the U.S. tariff would result in

A) China retaliating by raising tariffs on some U.S. exports.

B) China halting the sale of all products in the United States.

C) U.S. firms never being able to meet the demand for U.S.-produced tires.

D) the government demanding price cuts from U.S. tire manufacturers.

2) Workers in industries protected by tariffs and quotas are likely to support these trade restrictions because

A) they do not want to offend their employers who want them.

B) politicians lobby to convince workers the restrictions will make them better off.

C) they believe the restrictions will protect their jobs.

D) they don't understand that the restrictions will threaten their jobs.

3) The intention of the U.S. tariff on Chinese tires was to

A) protect jobs in the U. S. tire industry.

B) protect infant industries in tire U.S. tire market.

C) insure that Chinese tires meet U.S. quality and safety standards.

D) save the government money by restricting the sale of more expensive Chinese-made tires.

4) In the 1930s, the United States charged an average tariff rate ________. Today, the rate is ________.

A) of 100 percent; 20 percent

B) above 50 percent; less than 1.5 percent

C) of less than 10 percent; over 40 percent

D) of 17 percent; 33 percent

5) A tariff is a tax imposed by a government on

A) exports.

B) services.

C) imports.

D) luxury items.

6) Goods and services bought domestically but produced in other countries are referred to as

A) exports.

B) imports.

C) transfer payments.

D) foreign consumption.

7) Exports are domestically produced goods and services

A) sold to other countries.

B) sold to the government.

C) sold at home.

D) which are used to produce other goods and services.

8) When Roxanne, a U.S. citizen, purchases a designer dress from Barneys of New York that was made in Milan, the purchase is

A) both a U.S. and an Italian import.

B) a U.S. import and an Italian export.

C) a U.S. export and an Italian import.

D) neither an export nor an import for either country.

9) When BMW, a German company, purchases a welding machine that was made in Toronto, the purchase is

A) both a German and a Canadian import.

B) a German import and a Canadian export.

C) a German export and a Canadian import.

D) neither an export nor an import for either country.

10) Which of the following statements about the importance of trade to the U.S. economy is true?

A) Since 1950, both exports and imports have steadily decreased as a fraction of U.S. gross domestic product.

B) Overall, about 80 percent of U.S. manufacturing jobs depend directly or indirectly on exports.

C) The United States is the second largest exporter in the world.

D) The U.S. economy is highly dependent on international trade for growth in its gross domestic product.