If people with higher incomes pay a higher percentage of income in taxes, the income tax structure is ?

Related Mcqs:

1. 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

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. Because people’s income vary other the life cycle and because there are transitory shocks to people’s incomes the standard measures of income distribution ?

   A. exaggerate the inequality of living standards
   B. could exaggerate or understate the inequality of living standards depending on whether the transitory shocks are positive or negative
   C. understate the inequality of living standards
   D. accurately represent the true inequality of living standards

4. A progressive income tax means that those with a higher income pay ?

   A. a higher percentage of their income in taxes then low income people
   B. a lower percentage of their income in taxes than low income people
   C. the same percentage of their income in taxes as low income people all the taxes in the economy.
   D. all the taxes in the economy

5. 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%

6. 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

7. Which of the following is true with regard to a tax on labor income? Taxes on labor income tend to encourage ?

   A. the unscrupulous to enter the underground economy
   B. the elderly to retire early.
   C. all the things described in these answers.
   D. second earners to stay home.
   E. workers to work fewer hours

8. 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

9. Except for taxes to offset ______ taxes are ______?

   A. imperfect competition popular
   B. externalities , distortionary
   C. inequality , a first best option
   D. poor health, unnecessary

10. Suppose there are three identical vases available to be purchased. Buyer 1 is willing to pay Rs30 for one, buyer 2 is willing to pay Rs25 for one, and buyer 3 is willing to pay Rs20 for one. If the price is Rs25, how many vases will be sold and what is the value of consumer surplus in this market ?

    A. Three vases will be sold, and consumer surplus is Rs80
    B. One vase will be sold, and consumer surplus is Rs5.
    C. One vase will be sold, and consumer surplus is Rs30.
    D. Three vases will be sold, and consumer surplus is Rs0.
    E. Two vases will be sold, and consumer surplus is Rs5.