Devry ECO450 Week 9 Quiz

ECO 450 Week 9 QuizQuestion 1A tax on interest income:AnswerQuestion 2Which of the following is true about comprehensive income?AnswerQuestion 3If the market supply curve of savings is upward sloping, a tax on interest income will:AnswerQuestion 42 out of 2 pointsMost empirical research indicates that the market supply curve of labor hours by prime-age males is:AnswerQuestion 52 out of 2 pointsThe Haig-Simons definition of income:AnswerQuestion 6Using a regular labor supply curve instead of a compensated supply curve to calculate the excess burden of a tax on labor income will:AnswerQuestion 7If the return to savings, r, is subject to taxation at rate t, then in equilibrium a saver’s marginal rate of time preference will equal:AnswerQuestion 8The compensated labor supply curve:AnswerQuestion 9A flat-rate tax on labor income will:AnswerQuestion 10Comprehensive income:AnswerQuestion 112 out of 2 pointsIncome from labor services (wages) account for what percentage of gross income in the U.S.?AnswerQuestion 122 out of 2 pointsComprehensive income:AnswerQuestion 132 out of 2 pointsIf the supply of labor is perfectly inelastic, then the incidence of a payroll tax levied entirely on employers will be:AnswerQuestion 14The higher the compensated elasticity of supply of savings,AnswerQuestion 15Which of the following will increase a person’s comprehensive income?AnswerQuestion 16A taxpayer is in a 33-percent tax bracket and itemizes deductions. He obtains a mortgage from a bank at 9-percent interest. The actual rate of interest he pays is:AnswerQuestion 172 out of 2 pointsTax preferences:AnswerQuestion 18If the excess burden from tax is $10 million, lowering marginal tax rates should make the excess burden:AnswerQuestion 19Tax expenditures are:AnswerQuestion 202 out of 2 pointsAdjusted gross income, as defined by the United States Tax Code,AnswerQuestion 212 out of 2 points“Bracket creep” is no longer a problem in the United States because:AnswerQuestion 222 out of 2 pointsThe excess burden of tax preferences:AnswerQuestion 23Which of the following is true for the federal income tax in the United States?AnswerQuestion 24Removing savings from the tax base of the personal income tax is likely to:AnswerQuestion 25Because of the Earned Income Tax Credit, the effective tax rate for the lowest-income taxpayers in the United States is:AnswerQuestion 26Currently, the tax treatment of capital gains in the United States is such that:AnswerQuestion 27The reduction in marginal tax rates will:AnswerQuestion 282 out of 2 pointsAs of 2009, the highest marginal tax rate is:AnswerQuestion 29The exclusion of interest of state and local bonds from taxation by the federal government:AnswerQuestion 30Under the federal personal income tax rules prevailing as of 2009,Answer