- 12.Questions for Review 12.1: Over the past century, has the governments tax revenue grown more o...
- 12.Problems and Applications 12.1: In a published source or on the Internet, find out whether the U.S....
- 12.Questions for Review 12.2: What are the two most important sources of revenue for the U.S. fed...
- 12.Problems and Applications 12.2: The information in many of the tables in this chapter can be found ...
- 12.Questions for Review 12.3: Explain how corporate profits are taxed twice.
- 12.Problems and Applications 12.3: The chapter states that the elderly population in the United States...
- 12.Questions for Review 12.4: Why is the burden of a tax to taxpayers greater than the revenue re...
- 12.Problems and Applications 12.4: Suppose you are a typical person in the U.S. economy. You pay 4 per...
- 12.Questions for Review 12.5: Why do some economists advocate taxing consumption rather than income?
- 12.Problems and Applications 12.5: Some states exclude necessities, such as food and clothing, from th...
- 12.Questions for Review 12.6: What is the marginal tax rate on a lump-sum tax? How is this relate...
- 12.Problems and Applications 12.6: When someone owns an asset (such as a share of stock) that rises in...
- 12.Questions for Review 12.7: Give two arguments why wealthy taxpayers should pay more taxes than...
- 12.Problems and Applications 12.7: Suppose that your state raises its sales tax from 5 percent to 6 pe...
- 12.Questions for Review 12.8: What is the concept of horizontal equity and why is it hard to apply?
- 12.Problems and Applications 12.8: The Tax Reform Act of 1986 eliminated the deductibility of interest...
- 12.Problems and Applications 12.9: Categorize each of the following funding schemes as examples of the...
- 12.Problems and Applications 12.10: Any income tax schedule embodies two types of tax rates: average ta...
- 12.Problems and Applications 12.12: Each of the following expenditures is a deduction for the purposes ...
Solutions for Chapter 12: The Design of Tax Systems
Full solutions for Principles of Economics | 6th Edition
total revenue minus total explicit cost
the subfield of economics that integrates the insights of psychology
the equipment and structures used to produce goods and services
the failure of majority rule to produce transitive preferences for society
a situation in which the market price has reached the level at which quantity supplied equals quantity demanded
factors of production
the inputs used to produce goods and services
the setting of the level of government spending and taxation by government policymakers
the percentage change in the price index from the preceding period
a good for which, other things being equal, an increase in income leads to an increase in demand
a person’s normal income
a person’s normal income
people who systematically and purposefully do the best they can to achieve their objectives
the production of goods and services valued at constant prices
deposits that banks have received but have not loaned out
the limited nature of society’s resources
unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one
a cost that has already been committed and cannot be recovered
theory of liquidity preference
Keynes’s theory that the interest rate adjusts to bring money supply and money demand into balance
a worker association that bargains with employers over wages, benefits, and working conditions
willingness to pay
the maximum amount that a buyer will pay for a good