Save
Busy. Please wait.
or

show password
Forgot Password?

Don't have an account?  Sign up 
or

Username is available taken
show password

why


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account.
We do not share your email address with others. It is only used to allow you to reset your password. For details read our Privacy Policy and Terms of Service.


Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
focusNode
Didn't know it?
click below
 
Knew it?
click below
Don't know (0)
Remaining cards (0)
Know (0)
0:00
share
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

Microeconomics

Tax System

QuestionAnswer
For the federal government, which category does it get its greatest revenue from? Individual income tax
The federal government spends most of its money on...... Social security
The local and state governments get most of its revenue from _________ Sales tax
Local and state governments spends most of its money on _________ Education
What is a budget surplus? Government revenue is greater than government spending
What is budget deficit? Government spending is greater than government revenue
As the federal government gets more income...... The government's GDP increases as well.
How is the United States in a budget deficit in 2009? Since the elderly population is increasing, the government spends more on Social Security and Medicare.
Why do people want consumption tax better than income tax? It tax on people's spending, instead of income. With this tax, taxpayers (people) can save their money in their accounts.
What is a marginal tax rate? The extra dollar paid on additional dollar of income
What is an average tax rate? Total tax divided by total income
What is an example of an administrative burden? Taxpayer spends both his or her money or time on taxes
The time a taxpayer devotes to complying with the tax laws is an example of __________ Deadweight loss
What is a lump sum tax? Everyone pays the same amount regardless of income.
For a lump sum tax, the marginal tax rate is always _____________ Zero
What is "the ability to pay" principle? Taxes should be placed on people who can handle the burden
What is a vertical equity? The more income you have, the more money you have to pay for tax
What is a horizontal equity? Taxpayers with similar willingness to pay should pay the similar amount
What is progressive tax? People with higher income pays higher fraction than people with lower income.
What is regressive tax? People with lower income pays the higher fraction than people with higher income.
What is proportional tax? People, regardless of income, pays the same fraction of income.
For a corporate tax, where does the tax burden falls on? The people
What is the benefits of a lump-sum tax? -It doesn't distort incentives -Doesn't cause deadweight loss -Low administrative burden
What do some criticize the lump sum tax as unfair? The poor will pay the same amount as the rich.
What determines the deadweight loss? Marginal tax rate
Created by: U0105006
 

 



Voices

Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!

"Know" box contains:
Time elapsed:
Retries:
restart all cards