Concepts 1 Concepts 2 Name That Externality Misc Tax Terms &

Graphs

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Question 1 - 10

• The amount taken out of your paycheck every week is called….

Answer 1 – 10

• Withholding.

Question 1 - 20

• Give an example (not definition) of a free rider.

Answer 1 – 20

Question 1 - 30

• What is a free rider?

Answer 1 – 30

• Benefits, doesn’t pay anything for what they use.

Question 1 - 40

• A tax rate that increases as the tax base increases in an example of what kind of tax rate structure?

Answer 1 – 40

• Progressive

Question 1 - 50

• A tax rate that remains the same as the tax base increases in an example of what kind of tax rate structure?

Answer 1 – 50

• Proportional

Question 2 - 10

• A tax rate that decreases as income increases is known as….

Answer 2 – 10

• Regressive

Question 2 - 20

• The federal income tax is an example of which tax structure?

Answer 2 – 20

• Progressive

Question 2 - 30

• Which tax structure has the most negative effective on low income folks?

Answer 2 – 30

• Regressive

Question 2 - 40

• Sales tax is an example of which tax structure? Is there a second way to view the sales tax?

Answer 2 – 40

• Regressive, proportional

Question 2 - 50

• What is the largest source of federal revenue?

Answer 2 – 50

• Personal income tax.

Question 3 - 10

• List a negative externality of someone smoking next to you.

Answer 3 – 10

Question 3 - 20

• List a positive externality of planting flowers in the neighborhood.

Answer 3 – 20

Question 3 - 30

• List a negative externality of driving past a power plant.

Answer 3 – 30

Question 3 - 40

• What is a negative externality of driving?

Answer 3 – 40

• Air pollution

Question 3 - 50

• List a positive and negative externality of building an airport in Anthem.

Answer 3 – 50

Question 4 - 10

• A proportional tax is also known as a…

Answer 4 – 10

• Flat tax.

Question 4 - 20

• Give an example of regressive tax.

Answer 4 – 20

• Social security, sales tax, excise tax on jewelry, etc.

Question 4 - 30

• Corporate income tax falls under which tax structure?

Answer 4 – 30

• Progressive.

Question 4 - 40

• A tax on imports is called…

Answer 4 – 40

• Tariffs

Question 4 - 50

• What is a tax credit?

Answer 4 – 50

• Money given to organizations that you later deduct from your taxable income.

Question 5 - 10

• What are the characteristics of a good tax?

Answer 5 – 10

• Simplicity, Equity, Efficiency, Certainty

Question 5 – 20 – DAILY DOUBLE!!!

• List the roles of government in our economy.

Answer 5 – 20

1. Maintaining the legal and social framework2. Providing public goods and services3. Maintaining competition4. Redistributing income5. Correcting for externalities6. Stabilizing the economy

Question 5 - 30

• Draw a progressive tax graph.

Answer 5 – 30

• Starts out low gets higher.

Question 5 - 40

• Draw a regressive tax graph.

Answer 5 – 40

• Starts high, goes low.

Question 5 - 50

• Draw a proportional tax graph.

Answer 5 – 50

• Horizontal line.