A tax system is regarded as horizontally equitable if ?

Related Mcqs:

1. The ability-to-pay principle of taxation suggests that if a tax system is to be vertically equitable it should be ?

   A. efficient
   B. progressive
   C. regressive
   D. proportional

2. 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

3. 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

4. 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

5. The graph that shows the relationship between the size of a tax and the tax revenue collected by the government is known as a ?

   A. none of these answers
   B. Reagan curve
   C. Keynesian curve
   D. Laffer curve
   E. Henry George curve.

6. The appropriate tax rate to consider gauging how much the tax system distorts incentives and decision making is the ?

   A. Proportional tax rate
   B. average tax rate
   C. marginal tax rate
   D. vertical tax rate
   E. horizontal tax rate

7. When a tax on a good start small and is gradually increased tax revenue ?

   A. will fall
   B. will rise
   C. will first rise and then fall
   D. will first fall and then rise

8. If a tax on a good is doubled the deadweight loss from the tax ?

   A. doubles
   B. stays the same
   C. increase by a factor of four.
   D. could rise or fall

9. When a tax distorts incentives to buyers and sellers so that fewer goods are produced and sold than otherwise the tax has ?

   A. caused a deadweight loss
   B. decreased equity
   C. generated no tax revenue
   D. increased efficiency

10. The appropriate tax rate to consider judging the vertical equity of a tax system is the ?

    A. marginal tax rate
    B. average tax rate
    C. horizontal tax rate
    D. proportional tax rate