Question 1

Table 12-10 
-Refer to Table 12-10. If Miss Kay has $80,000 in taxable income, her marginal tax rate is

Accepted Answer

A)   15%.
B)   25%.
C)   28%.
D)   33%.E) C) and D)
F) None of the above

Question 2

Which of the following statements is correct?

Accepted Answer

A)   The U.S. federal government collected a higher percentage of income in taxes in the early 1900s than in the early 2000s.
B)   The U.S. federal government collects a higher percentage of income in taxes than many European countries, including France and Germany.
C)   The U.S. federal government collects a lower percentage of income in taxes than many developing countries, including Mexico and India.
D)   The U.S. federal government collects a similar percentage of income in taxes as Brazil and Japan.E) B) and C)
F) A) and D)

Question 3

With a lump-sum tax, the

Accepted Answer

A)   marginal tax rate is always less than the average tax rate.
B)   average tax rate is always less than the marginal tax rate.
C)   marginal tax rate falls as income rises.
D)   marginal tax rate rises as income rises.E) All of the above
F) B) and D)

Question 4

Table 12-9
United States Income Tax Rates for a Single Individual, 2012 and 2013. 
-Refer to Table 12-9. Jake is a single person whose taxable income is $20,000 a year. What happened to his average tax rate between 2012 and 2013?

Accepted Answer

A)   It increased.
B)   It decreased.
C)   It did not change.
D)   We do not have enough information to answer this question.E) B) and C)
F) A) and D)

Question 5

The largest category of expenditures for state and local governments is .

Accepted Answer

The answer of The largest category of expenditures for state...

Question 6

In 2011, the average American paid approximately how much to the federal government in taxes?

Accepted Answer

A)   $2,000
B)   $2,500
C)   $8,000
D)   $10,500E) A) and B)
F) A) and D)

Question 7

Table 12-5 
-Refer to Table 12-5. What is the marginal tax rate for a person who makes $60,000?

Accepted Answer

A)   20%
B)   23%
C)   40%
D)   45%E) C) and D)
F) B) and D)

Question 8

Table 12-10 
-Refer to Table 12-10. If Willie has $170,000 in taxable income, his average tax rate is

Accepted Answer

A)   23.8%.
B)   24.3%.
C)   25.9%.
D)   28.0%.E) None of the above
F) A) and B)

Question 9

In 2011, the largest source of receipts for state and local governments was individual income taxes.

Accepted Answer

A) True 
 B)False

Question 10

Table 12-10 
-Refer to Table 12-10. If Miss Kay has $80,000 in taxable income, her average tax rate is

Accepted Answer

A)   18.5%.
B)   20.2%.
C)   21.8%.
D)   25.0%.E) None of the above
F) C) and D)

Question 11

Table 12-25 
-Refer to Table 12-25. Which plan illustrates a regressive tax?

Accepted Answer

Plan A illustrates a regressiv...

Question 12

Table 12-7
The following table shows the marginal tax rates for unmarried individuals for two years. 
-Refer to Table 12-7. For an individual who earned $80,000 in both years, which of the following statements is true regarding the individual's marginal tax rate?

Accepted Answer

A)   The marginal tax rate is higher in 2010 than in 2009.
B)   The marginal tax rate is the same in 2010 as it was in 2009.
C)   The marginal tax rate is lower in 2010 than in 2009.
D)   With a proportional tax, as in 2010, it is not possible to determine the individual's marginal tax rate so it is not possible to compare the marginal tax rates in the two years.E) C) and D)
F) A) and C)

Question 13

Scenario 12-1
Ken places a $20 value on a cigar, and Mark places a $17 value on it. The equilibrium price for this brand of cigar is $15.
-Refer to Scenario 12-1. Suppose the government levies a tax of $3 on each cigar, and the equilibrium price of a cigar increases to $18. How much tax revenue is collected?

Accepted Answer

A)   $0
B)   $2
C)   $3
D)   $6E) A) and B)
F) A) and C)

Question 14

Table 12-25 
-Refer to Table 12-25. Which plan illustrates a progressive tax?

Accepted Answer

Plan C illustrates a progressi...

Question 15

Which of the following statements is correct?

Accepted Answer

A)   A general sales tax on food is regressive when low-income taxpayers spend a larger proportion of their income on food than high-income taxpayers.
B)   A general sales tax on food is regressive when middle income taxpayers spend a smaller proportion of their income on food than high-income taxpayers.
C)   A general sales tax on food is regressive when high-income taxpayers spend a larger proportion of their income on food than middle income taxpayers.
D)   A general sales tax on food is regressive when high-income taxpayers spend a larger proportion of their income on food than low-income taxpayers.E) B) and C)
F) B) and D)

Question 16

The income tax requires that taxpayers pay 10percent on the first $40,000 of income and 20 percent on all income over $40,000. Karen paid $6,000 in taxes. What were her marginal and average tax rates?

Accepted Answer

A)   20 percent and 12 percent, respectively
B)   20 percent and 15 percent, respectively
C)   10 percent and 12 percent respectively
D)   10 percent and 15 percent respectivelyE) B) and C)
F) All of the above

Question 17

List several examples of the administrative burden of the U.S. income tax system.

Accepted Answer

time spent filling out tax for...

Question 18

Table 12-11 
-Refer to Table 12-11. If Peggy has taxable income of $43,000, her average tax rate is

Accepted Answer

A)   14.7%.
B)   16.3%.
C)   20.8%.
D)   24.0%.E) A) and D)
F) B) and D)

Question 19

With a lump-sum tax,the average tax rate for high income taxpayers will be

Accepted Answer

A)   the same as the average tax rate for low income taxpayers.
B)   lower than the average tax rate for low income taxpayers.
C)   higher than the average tax rate for high income taxpayers.
D)   Any of the above could be true under a regressive tax system.E) C) and D)
F) B) and D)

Question 20

If Christopher earns $80,000 in taxable income and pays $20,000 in taxes, his average tax rate is 20 percent.

Accepted Answer

A) True 
 B)False

Exam 12: The Design of the Tax System

In 2011, the largest source of receipts for state and local governments was individual income taxes.

Correct Answer
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Table 12-10 -Refer to Table 12-10. If Willie has $170,000 in taxable income, his average tax rate is

Correct Answer
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If Christopher earns $80,000 in taxable income and pays $20,000 in taxes, his average tax rate is 20 percent.

Correct Answer
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With a lump-sum tax, the

Correct Answer
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Table 12-9 United States Income Tax Rates for a Single Individual, 2012 and 2013. -Refer to Table 12-9. Jake is a single person whose taxable income is $20,000 a year. What happened to his average tax rate between 2012 and 2013?

Correct Answer
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The income tax requires that taxpayers pay 10percent on the first $40,000 of income and 20 percent on all income over $40,000. Karen paid $6,000 in taxes. What were her marginal and average tax rates?

Correct Answer
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Which of the following statements is correct?

Correct Answer
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Table 12-11 -Refer to Table 12-11. If Peggy has taxable income of $43,000, her average tax rate is

Correct Answer
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The largest category of expenditures for state and local governments is .

Correct Answer
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Which of the following statements is correct?

Correct Answer
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Table 12-25 -Refer to Table 12-25. Which plan illustrates a progressive tax?

Correct Answer
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Plan C illustrates a progressi...
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Table 12-10 -Refer to Table 12-10. If Miss Kay has $80,000 in taxable income, her average tax rate is

Correct Answer
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Table 12-10 -Refer to Table 12-10. If Miss Kay has $80,000 in taxable income, her marginal tax rate is

Correct Answer
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With a lump-sum tax,the average tax rate for high income taxpayers will be

Correct Answer
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Table 12-7 The following table shows the marginal tax rates for unmarried individuals for two years. -Refer to Table 12-7. For an individual who earned $80,000 in both years, which of the following statements is true regarding the individual's marginal tax rate?

Correct Answer
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In 2011, the average American paid approximately how much to the federal government in taxes?

Correct Answer
verified

List several examples of the administrative burden of the U.S. income tax system.

Correct Answer
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time spent filling out tax for...
View Answer

Table 12-25 -Refer to Table 12-25. Which plan illustrates a regressive tax?

Correct Answer
verified
Plan A illustrates a regressiv...
View Answer

Table 12-5 -Refer to Table 12-5. What is the marginal tax rate for a person who makes $60,000?

Correct Answer
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Exam 12: The Design of the Tax System

In 2011, the largest source of receipts for state and local governments was individual income taxes.

Correct AnswerverifiedShow Answer

Table 12-10 -Refer to Table 12-10. If Willie has $170,000 in taxable income, his average tax rate is

Correct AnswerverifiedShow Answer

If Christopher earns $80,000 in taxable income and pays $20,000 in taxes, his average tax rate is 20 percent.

Correct AnswerverifiedShow Answer

With a lump-sum tax, the

Correct AnswerverifiedShow Answer

Table 12-9 United States Income Tax Rates for a Single Individual, 2012 and 2013. -Refer to Table 12-9. Jake is a single person whose taxable income is $20,000 a year. What happened to his average tax rate between 2012 and 2013?

Correct AnswerverifiedShow Answer

The income tax requires that taxpayers pay 10percent on the first $40,000 of income and 20 percent on all income over $40,000. Karen paid $6,000 in taxes. What were her marginal and average tax rates?

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Table 12-11 -Refer to Table 12-11. If Peggy has taxable income of $43,000, her average tax rate is

Correct AnswerverifiedShow Answer

The largest category of expenditures for state and local governments is .

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Table 12-25 -Refer to Table 12-25. Which plan illustrates a progressive tax?

Correct AnswerverifiedPlan C illustrates a progressi...View AnswerShow Answer

Table 12-10 -Refer to Table 12-10. If Miss Kay has $80,000 in taxable income, her average tax rate is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Table 12-10 -Refer to Table 12-10. If Miss Kay has $80,000 in taxable income, her marginal tax rate is

Correct AnswerverifiedShow Answer

With a lump-sum tax,the average tax rate for high income taxpayers will be

Correct AnswerverifiedShow Answer

Table 12-7 The following table shows the marginal tax rates for unmarried individuals for two years. -Refer to Table 12-7. For an individual who earned $80,000 in both years, which of the following statements is true regarding the individual's marginal tax rate?

Correct AnswerverifiedShow Answer

In 2011, the average American paid approximately how much to the federal government in taxes?

Correct AnswerverifiedShow Answer

List several examples of the administrative burden of the U.S. income tax system.

Correct Answerverifiedtime spent filling out tax for...View AnswerShow Answer

Table 12-25 -Refer to Table 12-25. Which plan illustrates a regressive tax?

Correct AnswerverifiedPlan A illustrates a regressiv...View AnswerShow Answer

Table 12-5 -Refer to Table 12-5. What is the marginal tax rate for a person who makes $60,000?

Correct AnswerverifiedShow Answer

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Plan C illustrates a progressi...
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time spent filling out tax for...
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Plan A illustrates a regressiv...
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