The proportion of an increase in national income paid in tax is ?

Related Mcqs:

1. Imagine there is no tax on income up to Rs 1000 after that there is a tax of 505 what is the average tax rate on an income of Rs 20,000 ?

   A. Rs 50000
   B. 20%
   C. 25%
   D. Rs 10000

2. If the income tax rate changes from 30% to 40% on income over Rs30,000 and a person’s income is Rs 31,000 then her marginal tax rate is ?

   A. 30%
   B. 10%
   C. 70%
   D. 40%

3. The property tax wealth tax inheritance tax and income taxes such as persona and corporate taxes are ?

   A. indirect taxes
   B. direct taxes
   C. inelastic
   D. value-added tax

4. A tax for which high income taxpayers pay a smaller fraction of their income than do low income taxpayers is known as ?

   A. a proportional tax
   B. a regressive tax
   C. an equitable tax
   D. a progressive tax

5. A tax whose burden is the same proportion of income for all households is ?

   A. an equal tax
   B. a proportional tax
   C. a progressive tax
   D. a regressive tax

6. A tax which is paid by the person on whom the tax is incident is called a ?

   A. Local tax
   B. Indirect tax
   C. Direct tax
   D. Rate

7. Refer to Exhibit 4. If a tax is placed on the product in this market tax revenue paid by the buyers is the area ?

   A. B + C + E + F
   B. B
   C. B + C
   D. A

8. Refer to Exhibit 4. If a tax is placed on the product in this market tax revenue paid by the sellers is the area ?

   A. C + F
   B. A
   C. B
   D. C

9. According to the Laffer curve as tax rates increase tax revenue ?

   A. initially increase and then decrease
   B. decrease continuously
   C. rise continuously
   D. initially decrease and then increase

10. When an increase in government purchases increases the income of some people, and those people spend some of that increase in income on additional consumer goods, we have seen a demonstration of ?

    A. The multiplier effects
    B. supply side economics
    C. None of these answers
    D. The crowding out effect