Name: 

The largest source of revenue for the UK government is personal income tax.

An excise tax is a tax on income.

Expenditure on national defence is an example of a government transfer payment.

To judge the vertical equity of a tax system, one should look at the average tax rate of taxpayers of differing income levels.

The marginal tax rate is the appropriate tax rate to judge how much a particular tax system distorts economic decision making.

A lump-sum tax is a progressive tax.

Lump-sum taxes are equitable but not efficient.

An efficient tax is one that generates minimal deadweight losses and minimal administrative burdens.

The personal income tax system in the United Kingdom is regressive.

Corporations bear the burden of corporation tax.

A tax system with a low marginal tax rate generates less deadweight loss and is more efficient than a similar tax system with a higher marginal tax rate.

If the government runs a budget deficit, it means that there is an excess of government spending over government receipts.

Reducing tax rates can lead to an increase in tax revenue for a government.

The marginal tax rate is total taxes paid divided by total income.

The chief advantage of replacing personal income tax with a consumption tax is that it would remove the disincentive to saving that arises from the levying of personal income tax on income from savings.

Which of the following lists the sources of tax revenue to the UK government from the largest source to the smallest source?

In the United Kingdom, the tax system is

In 2008-09, the total amount of taxes levied in the UK was equivalent to around which of the following for every man, woman and child in the country (to the nearest thousand)

Which of the following lists the spending by the UK government from the largest category to the smallest category?

If the German government runs a budget surplus, there is

Heike values a pair of blue jeans at €40. If the price is €35, Heike buys the jeans and generates consumer surplus of €5. Suppose a tax is placed on blue jeans that causes the price of blue jeans to rise to €45. Now Heike chooses not to buy a pair of jeans. This example has demonstrated

A tax for which high income taxpayers pay a smaller fraction of their income than do low income taxpayers is known as

An efficient tax

The marginal tax rate is

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

The average tax rate is

Which of the following taxes is the most efficient tax?

A progressive tax system is one where

Refer to Table 12.10. The average tax rate for a German taxpayer earning €40,000 (rounded up) is

Refer to Table 12.10. This tax system is

Refer to Table 12.10. The marginal tax rate for a taxpayer whose earnings rises from €50,000 to €60,000 is

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

Which of the following taxes can be supported by the benefits principle of taxation?

The appropriate tax rate to consider to gauge how much the tax system distorts incentives and decision making is the

A tax system is regarded as horizontally equitable if