Question 1

In 2010 Mr.Huckabee paid $500 in personal income tax.His taxable income was

Accepted Answer

A)  $5,000.
B)  $10,000.
C)  $15,000.
D)  $20,000.

Question 2

Suppose Stockton earns $30,000 per year and Malone earns $60,000 per year.Which of the following statements is FALSE concerning their Social Security taxes?

Accepted Answer

A)  Both will pay a Social Security tax.
B)  Stockton will pay Social Security tax on all of his income.
C)  Malone will pay Social Security tax on the majority of his income.
D)  Stockton and Malone will pay the same Social Security tax rate on their incomes.

Question 3

-The tax shown in the graph above is

Accepted Answer

A)  nominally progressive and regressive in effect.
B)  nominally progressive and progressive in effect.
C)  nominally proportional and progressive in effect.
D)  nominally proportional and regressive in effect.

Question 4

The tax rates embodied in the federal personal income tax are such that

Accepted Answer

A)  a rising absolute amount,but a declining proportion,of income is paid in taxes.
B)  the marginal and average tax rates are equal,making the tax progressive.
C)  the average tax rate rises more rapidly than does the marginal tax rate.
D)  the marginal tax rate is higher than the average tax rate,causing the average tax rate to rise.

Question 5

An excise tax on cigarettes is ________ and _______.

Accepted Answer

A)  regressive,direct.
B)  regressive,indirect.
C)  progressive,direct.
D)  progressive,indirect.

Question 6

The economic role of government has been growing for _____ decades.

Accepted Answer

The answer of The economic role of government has been...

Question 7

If you employ 100 people,each of whom earns $10,000,you have to pay payroll taxes totaling how much?

Accepted Answer

100 * $765...

Question 8

Statement I: Most poor people have an average tax rate of 10 percent.
Statement II: In 1992 the maximum federal personal income tax rate was 31 percent.

Accepted Answer

A)  Statement I is true and statement II is false.
B)  Statement II is true and statement I is false.
C)  Both statements are true.
D)  Both statements are false.

Question 9

Which of the following years was there NOT a federal income tax cut?

Accepted Answer

A)  1981
B)  1986
C)  1993
D)  2001
E)  2003

Question 10

In the United States,federal government tax receipts are somewhat less than _____ percent of GDP.

Accepted Answer

A)  10
B)  20
C)  30
D)  40
E)  50

Question 11

The Noriega family pays $1,400 taxes on a taxable income of $14,000.How much is its marginal tax rate?

Accepted Answer

The answer of The Noriega family pays $1,400 taxes on...

Question 12

Which statement is FALSE with respect to the size and role of the U.S.government?

Accepted Answer

A)  Two major crises,the Great Depression and World War II,led to a much greater economic role for the federal government.
B)  Since 1945,the role of government at the federal,state,and local level has expanded.
C)  The economic role of the federal government has steadily expanded ever since the Civil War.
D)  The seeds of the expansion of the federal government's economic role were sown during the Roosevelt administration from 1933-1945.

Question 13

Statement I: The top marginal rate of the federal personal income tax is much lower today than it was in the 1950s.
Statement II: The Social Security system will run out of money by the year 2013.

Accepted Answer

A)  Statement I is true and statement II is false.
B)  Statement II is true and statement I is false.
C)  Both statements are true.
D)  Both statements are false.

Question 14

In 2010,the upper middle class is taxed at a marginal rate of _____ percent,while the working class and lower middle class is taxed at a marginal rate of _____ percent.

Accepted Answer

The answer of In 2010,the upper middle class is taxed...

Question 15

Federal government spending was fairly constant for more than a decade until the year ____,when it rose sharply;then it rose sharply again in the year ____.

Accepted Answer

The answer of Federal government spending was fairly constant for...

Question 16

Which of the following statements is true?

Accepted Answer

A)  New Hampshire residents pay a higher percent of their income in taxes than the people in the province of Quebec,CanadA.
B)  The top marginal tax rate today is about half of the top marginal tax rate in 1960.
C)  Today the overall tax burden is about the same as what it was in 1929.
D)  Education in the U.S.is paid for exclusively by local taxes.

Question 17

Which statement is the most accurate?

Accepted Answer

A)  Most taxes are proportional taxes.
B)  Poor people bear most of the burden of progressive taxes.
C)  John Stuart Mill was the first to make the distinction between direct and indirect taxes.
D)  President Reagan was largely responsible for raising personal income tax rates.

Question 18

The rich pay a _____ proportion of their income and a _____ dollar amount of federal income tax than the middle class.

Accepted Answer

A)  higher,higher
B)  lower,lower
C)  higher,lower

Question 19

-When taxable income rises from $40,000 to $60,000,

Accepted Answer

A)  Your average tax rate is greater than your marginal tax rate.
B)  Your marginal tax rate is greater than your average tax rate.
C)  Your marginal and average tax rates are equal.
D)  It is impossible to determine if your average or marginal tax rate is higher.

Question 20

The fastest growing source of federal tax revenue is the _____ tax.

Accepted Answer

A)  personal income
B)  corporate income
C)  payroll
D)  excise

Exam 7: The Government Sector

Suppose Stockton earns $30,000 per year and Malone earns $60,000 per year.Which of the following statements is FALSE concerning their Social Security taxes?

Correct AnswerverifiedShow Answer

If you employ 100 people,each of whom earns $10,000,you have to pay payroll taxes totaling how much?

Correct Answerverified100 * $765...View AnswerShow Answer

Federal government spending was fairly constant for more than a decade until the year ____,when it rose sharply;then it rose sharply again in the year ____.

Correct AnswerverifiedShow Answer

Which statement is FALSE with respect to the size and role of the U.S.government?

Correct AnswerverifiedShow Answer

An excise tax on cigarettes is ________ and _______.

Correct AnswerverifiedShow Answer

-When taxable income rises from $40,000 to $60,000,

Correct AnswerverifiedShow Answer

Which of the following years was there NOT a federal income tax cut?

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Statement I: Most poor people have an average tax rate of 10 percent. Statement II: In 1992 the maximum federal personal income tax rate was 31 percent.

Correct AnswerverifiedShow Answer

Which statement is the most accurate?

Correct AnswerverifiedShow Answer

The Noriega family pays $1,400 taxes on a taxable income of $14,000.How much is its marginal tax rate?

Correct AnswerverifiedShow Answer

In the United States,federal government tax receipts are somewhat less than _____ percent of GDP.

Correct AnswerverifiedShow Answer

The fastest growing source of federal tax revenue is the _____ tax.

Correct AnswerverifiedShow Answer

The economic role of government has been growing for _____ decades.

Correct AnswerverifiedShow Answer

In 2010,the upper middle class is taxed at a marginal rate of _____ percent,while the working class and lower middle class is taxed at a marginal rate of _____ percent.

Correct AnswerverifiedShow Answer

-The tax shown in the graph above is

Correct AnswerverifiedShow Answer

The rich pay a _____ proportion of their income and a _____ dollar amount of federal income tax than the middle class.

Correct AnswerverifiedShow Answer

Statement I: The top marginal rate of the federal personal income tax is much lower today than it was in the 1950s. Statement II: The Social Security system will run out of money by the year 2013.

Correct AnswerverifiedShow Answer

The tax rates embodied in the federal personal income tax are such that

Correct AnswerverifiedShow Answer

In 2010 Mr.Huckabee paid $500 in personal income tax.His taxable income was

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

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100 * $765...
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Federal government spending was fairly constant for more than a decade until the year ,when it rose sharply;then it rose sharply again in the year .

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An excise tax on cigarettes is __ and _.

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In 2010,the upper middle class is taxed at a marginal rate of _ percent,while the working class and lower middle class is taxed at a marginal rate of _ percent.

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The rich pay a _ proportion of their income and a _ dollar amount of federal income tax than the middle class.

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