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ECO 450 Week 9 Quiz

Question 1

A tax on interest income:

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Question 2

Which of the following is true about comprehensive income?

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Question 3

If the market supply curve of savings is upward sloping, a tax on interest income will:

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Question 4

2 out of 2 points

Most empirical research indicates that the market supply curve of labor hours by prime-age males is:

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Question 5

2 out of 2 points

The Haig-Simons definition of income:

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Question 6

Using a regular labor supply curve instead of a compensated supply curve to calculate the excess burden of a tax on labor income will:

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Question 7

If the return to savings, r, is subject to taxation at rate t, then in equilibrium a saver’s marginal rate of time preference will equal:

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Question 8

The compensated labor supply curve:

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Question 9

A flat-rate tax on labor income will:

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Question 10

Comprehensive income:

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Question 11

2 out of 2 points

Income from labor services (wages) account for what percentage of gross income in the U.S.?

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Question 12

2 out of 2 points

Comprehensive income:

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Question 13

2 out of 2 points

If the supply of labor is perfectly inelastic, then the incidence of a payroll tax levied entirely on employers will be:

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Question 14

The higher the compensated elasticity of supply of savings,

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Question 15

Which of the following will increase a person’s comprehensive income?

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Question 16

A taxpayer is in a 33-percent tax bracket and itemizes deductions. He obtains a mortgage from a bank at 9-percent interest. The actual rate of interest he pays is:

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Question 17

2 out of 2 points

Tax preferences:

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Question 18

If the excess burden from tax is $10 million, lowering marginal tax rates should make the excess burden:

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Question 19

Tax expenditures are:

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Question 20

2 out of 2 points

Adjusted gross income, as defined by the United States Tax Code,

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Question 21

2 out of 2 points

“Bracket creep” is no longer a problem in the United States because:

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Question 22

2 out of 2 points

The excess burden of tax preferences:

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Question 23

Which of the following is true for the federal income tax in the United States?

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Question 24

Removing savings from the tax base of the personal income tax is likely to:

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Question 25

Because of the Earned Income Tax Credit, the effective tax rate for the lowest-income taxpayers in the United States is:

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Question 26

Currently, the tax treatment of capital gains in the United States is such that:

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Question 27

The reduction in marginal tax rates will:

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Question 28

2 out of 2 points

As of 2009, the highest marginal tax rate is:

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Question 29

The exclusion of interest of state and local bonds from taxation by the federal government:

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Question 30

Under the federal personal income tax rules prevailing as of 2009,

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