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

Related Mcqs:

1. 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

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. 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. 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%

5. Beyond any mortgage thereon and liability therein, the residual value of a business or property is called equity. Which of the following are also included by term equity ?

   A. The market value of securities less any debt incurred and common stock and preferred stock
   B. Funds provided to a business by the sale of stock
   C. Both of them
   D. None of them

6. Vertical equity holds that ?

   A. those will equal ability to pay should bear equal tax burdens.
   B. those who benefit the most from government service should bear the higher tax burden
   C. those with equal ability to pay should bear unequal burdens
   D. those with greater ability to pay should pay more

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. 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

10. 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