merged

___ 6. Federal excise taxes:
a. are the largest source of federal tax revenue
b. are a progressive tax
c. have no effect on consumers since they are collected from producers
d. None of the above
___ 7. Excess burden:
a. is the amount that the burden imposed by a tax exceeds the funding provided by the
tax
b. occurs with all taxes
c. is minimized if a tax is narrowly-based and is imposed on elastic goods
d. Both a. and b. above
___ 8. The sources of excess burden include:
a. the cost for the taxpayers to comply with the tax
b. the deadweight loss of the tax
c. the cost for the government to collect the tax
d. All of the above
___ 9. To minimize the deadweight loss, a tax should:
a. be narrowly-based, so as to affect only a few goods
b. have low rates, so as to minimize the effect on private market decisions
c. Both of the above
d. Neither of the above
___ 10. The federal personal income tax:
a. is extremely complicated
b. imposes a large deadweight loss
c. has little effect on decisions made in private markets
d. Both a. and b. above
___ 11. Loopholes:
a. are exclusions and exemptions from income, deductible expenses, and tax credits
b. reduce the tax base by nearly a billion dollars
c. distort the decisions made in private markets
d. Both a. and c. above
___ 12. Making the federal personal income tax less progressive:
a. would increase the size of the deadweight loss
b. would help in achieving the goal of equalizing the distribution of income
c. Both of the above
d. Neither of the above
___ 13. The average federal income tax rate for the bottom 50% of income earners was ___% in
2012.
a. 1.3%
b. 3.3%
c. 13.1%
d. 22.8%
___ 14. The top 25% of income earners received ___ % of total AGI in 2012.
a. 87.8%
b. 69.2%
c. 47.9%
d. 25.0%
FOR REVIEW ONLY - NOT FOR DISTRIBUTION
13 - 13 Taxes, Deficits, and the National Debt