ch. 10

if the sellers of a good are taxed for each unit sold,

a smaller quantity of the good is sold

a _____ market is a non-legal market for regulated goods and services

black

transfer payments from the government to

certain individuals or groups

_____ is generated from taxing profits earned by firms

corporate income tax

a price floor set above equilibrium price leads to an

excess supply of goods in the market

______ taxes are taxes paid when purchasing specific goods such as alcohol, tobacco, and gasoline

excise

which of the following is true of a progressive tax system

high income households pay a higher percentage of their income as taxes

the government of richland has set a minimum wage for factory workers. this will lead to an _____ if above the current market wage

increase in the number of workers supplied

largest source of the federal tax revenue is

individual income taxes

which of the following accounts for the largest portion of federal government spening

national defense

_____ taxes represent about a third of the federal government's receipts

payroll

taxes listed as federal insurance contribution act taxes on the employee paystub are

payroll taxes

marginal income tax rate is the

percentage of the last dollar earned that a household pays in taxes

a rent control is an example of

price ceiling

the price of a gallon of gas is 3.20. just before the election, the government decides to fix the price to 2.80 this is an example of a

price ceiling

a minimum wage policy is an example of a

price floor

the government in lithasia has decide to set a minimum price for certain agricultural products in order to safeguard the interest of farmers. this is an example of

price floor

local government usually rely on the ______ tax to fund schools, libraries, and public services such as policies and fire protection

property

a ________ system is one in which household pay the same percentage of their incomes in taxes regardless of their income level

proportional

property taxes in the U.S, are

regressive

social security taxes in the U.S. tend to be

regressive

_____ Taxes are paid by a buyer as a percentage of the market price of an item

sales

payroll tax is also known as a

social insurance tax

which of the following taxes is collected only by the federal government

social insurance tax

a _____ tax is a tax on wages that employers are require to withhold from employees pay

social-insurance tax

the term _______ refers to how the burden of the tax is distributed across various agents in the economy

tax incidence

in proportional tax system

the average tax rate equals the marginal tax rate

the supply of milk in nexus city is perfectly elastic, if a tax is imposed on each gallon of milk sold

the burden of the tax will fall entirely on the buyers

the demand curve for pizza is vertical, if the tax imposed on each pizza bought

the burden of the tax will fall on the buyers

the incidence of a per unit tax on a good is identical for buyers and sellers of the good if

the buyers and sellers of the good are equally sensitive to price changes

the tax incidence on sellers is higher if

the buyers are more sensitive to price changes than the sellers

if a tax is imposed on each unit of a good purchased,

the demand curve shift to the left

the tax incidence on buyers is higher if

the elasticity of the market supply curve is higher than the elasticity of the market demand curve

a price ceiling does not lead to a deadweight loss if

the equilibrium market price lies below the price ceiling

a black market can emerge for a good if ______

the good is taxed heavily

in a progressive tax system

the marginal tax rate exceeds the average tax rate

the burden of a tax falls entirely on sellers if

the price elasticity is zero

the burden of a tax falls entirely on buyers if

the price elasticity of demand is zero

if a tax is imposed per unit of a good sold,

the supply curve for the good shifts to the left

the demand for chocolate is perfectly inelastic. if a tax is imposed

the tax burden will fall entirely on buyers

a black market is also known as a____ economy

underground

a tax collected at each stage of the production process is called a ____ tax

value-added