Question

Explanation not needed​​​

1. The U.S. tax burden is:

1. About the same as most European countries.
2. Higher than most European countries.
3. Lower than most European countries.

1. Higher than all European countries.

2. when negative externalities are present in a market

1. private costs will be greater than social costs.
2. Social costs will be greater than private costs.
3. Only government regulation will solve the problem.
4. The market will not be able to reach any equilibrium.

3. In 2009, which category represented the largest source of receipts for the U.S. federal government?

1. Medicare.
2. Social security.
3. Individual income taxes.
4. Corporate income taxes.

4. The U.S. federal government collects taxes in a number of ways. Rank the following sources of revenue from the largest to the smallest

1. corporate income taxes, individual income taxes, social insurance taxes
2. social insurance taxes, individual income taxes, corporate income taxes
3. individual income taxes, corporate income taxes, social insurance taxes
4. individual income taxes, social insurance taxes, corporate income taxes.

5. A payroll tax is a tax on

1. The wages that a firm pays its workers.
2. Earned and unearned income.
3. Specific goods like gasoline and cigarettes.
4. Corporate profits.

6. the total fixed cost curve:

1. varies with the quantity of inputs used.

2. Decreases with output.
3. Increases with output.
4. Remains constant regardless of output.

Answer 1

1. Option c. European countries taxes are in the range of 40 percent whereas the US is in the range of 30 percent

2. Option b. As social cost = externality + private cost

3. Option b.

4. Option c.

5. Option b. It is a tax on the income

6. Option b. The formula, AFC = FC/Output