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

Related Mcqs:

1. A tax whose burden expressed as a percentage of income, falls as income increases is a ?

   A. benefits received tax
   B. progressive tax
   C. regressive tax
   D. proportional tax

2. 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

3. 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%

4. 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

5. A tax placed on a good that is a necessity for consumers will likely generate a tax burden that ?

   A. falls more heavily on sellers
   B. falls entirely on sellers
   C. falls more heavily on buyers.
   D. is evenly distributed between buyers and sellers.

6. Disposable income is the part of households income left after the deduction of ?

   A. income tax and social security payments
   B. taxes and the addition of benefits
   C. income tax
   D. contractual payments such as pensions and mortgages

7. 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

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

   A. the fiscal stance
   B. the tax multiplier
   C. the marginal tax propensity
   D. the average tax propensity

9. The burden of a tax falls more heavily on the buyers in a market when ?

   A. both supply and demand are inelastic
   B. demand is elastic, and supply are inelastic
   C. both supply and demand are elastic
   D. demand is inelastic, and supply is elastic

10. For which of the following products would the burden of a tax likely fall more heavily on the sellers ?

    A. Clothing
    B. food
    C. housing
    D. entertainment