A. average tax rate
B. marginal tax rate
C. proportional tax rate
D. total tax rate
Income Inequality
A tax whose burden is the same proportion of income for all households is ?
A. an equal tax
B. a proportional tax
C. a progressive tax
D. a regressive tax
A tax whose burden expressed as a percentage of income, falls as income increases is a ?
A. benefits received tax
B. progressive tax
C. regressive tax
D. proportional tax
Tax shifting ?
A. is the way in which a tax is structured
B. occurs when households can alter their behaviour and do something to avoid paying tax
C. occurs when taxes cause prices to increase but wages to fall.
D. is the ultimate distribution of a tax’s burden
An example of an indirect tax is ?
A. income tax
B. VAT
C. a tax on profits.
D. inheritance tax
Housing Benefit is a good example of ?
A. a means tested cash benefit
B. a universal (social insurance based) benefit
C. a benefit in kind
D. none of the above
In Pakistan the term the poverty trap is used to describe the fact that ?
A. poor people are excluded from most leisure and social activities
B. the Pakistan benefit system makes being poor vary degrading
C. if poor people earn more their benefits fall, making them no better off.
D. in the Pakistan poor people are heavily taxed
Permanent income is ?
A. Social Security income of the elderly and disabled
B. none of these answers
C. wages fixed by a union or other labour contract
D. equal to the minimum wage
E. a person’s normal or average income
Because people’s income vary other the life cycle and because there are transitory shocks to people’s incomes the standard measures of income distribution ?
A. exaggerate the inequality of living standards
B. could exaggerate or understate the inequality of living standards depending on whether the transitory shocks are positive or negative
C. understate the inequality of living standards
D. accurately represent the true inequality of living standards
Mariam earns more than Seamus and she came by her income fairly and honestly which of the following political philosophies would argue against the redistribution of income from Mariam to Seamus ?
A. all of these answers
B. libertarianism
C. utilitarianism
D. none of these answers