ECO 450 Week 7 Quiz StrayerClick on the Link Below to Purchase ! "ra#e# Course $aterialhttp://www.hwgala.com/ECO-450-Week-7-Quiz-Strayer-!4.htmQuiz 5 Cha%ter &0C"#$ %E&( 0'ntro#uctionto"o(ern)ent*inance+,-E.*LSE Q-ES+'O/S&0 %a)e* *imulta+eou*ly ratio+ a+, -i+a+ce go.er+me+t goo,* a+, *er.ice*.10 %he -e,eral go.er+me+t -i+a+ce* o+ly hal- o- it* e)pe+,iture* with ta)e*.20 %he /e+e-it pri+ciple argue* that the mea+* o- -i+a+ci+g go.er+me+t goo,* a+, *er.ice* *houl, /e li+ke, to the /e+e-it* recei.e, -rom tho*e goo,* a+, *er.ice*.40 "orizo+tal e0uity i* achie.e, whe+ i+,i.i,ual* o- the *ame eco+omic capacity pay the *ame amou+t o- ta)e* o.er a gi.e+ perio,.50 # -lat-rate i+come ta) i* a proportio+al ta) o+ a+ i+come /a*e.30 %he margi+al ta) rate will e.e+tually e)cee, the a.erage ta) rate i- the ta) rate *tructure i* proportio+al.70 %he margi+al ta) rate -or a payroll ta) i* 7 perce+t o+ all wage* up to 1203000per year. %he margi+al ta) rate -or wage* i+ e)ce** o- 1203000 per year i* zero. %he payroll ta) i* there-ore a regre**i.e ta).40 %a) e.a*io+ woul, /e le** o- a pro/lem i- ta) rate* were lowere,.50 %he u*er charge -or a co+ge*ti/le pu/lic goo, *houl, /e zero at all time*.&00 4ero price* -or price-e)clu,a/le go.er+me+t *er.ice* pro.i,e /e+e-it* o+ly to the poor.&&0 %he ga*oli+e ta) i* a+ e)ample o- a ge+eral ta) o+ co+*umptio+.&10 5or a proportio+al ta)3 the margi+al ta) rate i* alway* e0ual to the a.erage ta) rate.&20 %a) a.oi,a+ce i* a+ illegal acti.ity i+ the 6+ite, State*.&40 #+ i+crea*e i+ margi+al ta) rate* i* likely to i+crea*e ta) e.a*io+.&50 7o*t *tu,ie* i+,icate that *tate-ru+ lotterie* are e0ui.ale+t to a progre**i.e ta) o+ gam/li+g.&30 8o.er+me+t acti.ity re0uire* the reallocatio+ o- re*ource* -rom go.er+me+t to pri.ate u*e.&70 # -lat i+come ta) 9i.e. a -i)e, amou+t pai, /y e.ery ta)payer: i* a+ e)ample o- a *electi.e ta).&40 %he a.erage ta) rate a+, margi+al ta) rate are the *ame u+,er a progre**i.e ta) rate *tructure. $-L+'PLE C6O'CE Q-ES+'O/S&0 #ccor,i+g to the /e+e-it pri+ciple3a. ta)e* *houl, /e ,i*tri/ute, accor,i+g to a/ility to pay./. u*er charge* are a+ i,eal *ource o- -i+a+ce -or go.er+me+t goo,* a+, *er.ice*.c. the progre**i.e i+come ta) repre*e+t* the i,eal way o- ,i*tri/uti+g ta)e*amo+g citize+*.,. -lat-rate ta)e* are alway* the /e*t ki+,.10 ;- horizo+tal e0uity i* achie.e, i+ ta)atio+3a. .ertical e0uity will al*o /e achie.e,./. i+,i.i,ual* o- e0ual eco+omic capacity will pay e0ual ta)e*.c. a -lat-rate ta) will /e u*e,.,. the ta) *y*tem will +ot re*ult i+ lo**e* i+ e--icie+cy i+ market*.20 %he ta) /a*e o- a payroll ta) i*:a. co+*umer e)pe+,iture*./. i+tere*t i+come.c. la/or i+come.,. /oth 9/: a+, 9c:40 # 5-perce+t retail *ale* ta) o+ all co+*umer purcha*e* i+ a *tate i* impo*e,. %he *ale* ta) i*:a. a -lat-rate ta)./. a ta) with a regre**i.e rate *tructure.c. le.ie, o+ a+ i+come /a*e.,. all o- the a/o.e50 # ta) o+ the .alue o- real e*tate hol,i+g* i* a:a. *electi.e ta) o+ wealth./. ge+eral ta) o+ wealth.c. ge+eral ta) o+ i+come.,. *electi.e ta) o+ i+come.30 #+ e)ci*e ta) i* a:a. ge+eral co+*umptio+ ta)./. *electi.e co+*umptio+ ta).c. ge+eral wealth ta).,. *electi.e ta) o+ wealth.70 # proportio+al i+come ta) ha* a+ a.erage ta) rate that:a. alway* i* le** tha+ the margi+al ta) rate./. alway* e)cee,* the margi+al ta) rate.c. e0ual* the margi+al ta) rate at -ir*t a+, the+ /ecome* le** tha+ the margi+al ta) rate.,. alway* e0ual* the margi+al ta) rate.40 # payroll ta) ta)e* a worker00(. Other thi+g* /ei+g e0ual3 thi* i* likely to:a. i+crea*e ta) e.a*io+./. ,ecrea*e ta) e.a*io+.c. ha.e +o e--ect o+ ta) e.a*io+.,. i+crea*e ta) a.oi,a+ce.&30 What i* a+ e)ample o- a +ormati.e criterio+ that a go.er+me+t mu*t tra,e-o-- i+ it* metho, o- ta)atio+?a. E0uity/. E--icie+cyc. #,mi+i*trati.e ea*e,. all o- the a/o.e&70 %a) a.oi,a+ce i*:a. a mea+* o- ta) e.a*io+./. a mea+* o- ,ecrea*i+g ta)e* pai, /y a,=u*ti+g /eha.ior.c. a political proce** e)plicitly -or the re,uctio+ o- ta)atio+.,. a mea+* to a.oi, ta) owe,.&40 ;- the margi+al ta) rate i* >0@ u+,er a proportio+al ta) rate *tructure3 the a.erage ta) rate:a. *houl, /e >0@./. *houl, /e a/o.e >0@.c. *houl, /e /elow >0@.,. ca++ot /e ,etermi+e,.&50 ;- the a.erage ta) rate u+,er a progre**i.e ta) rate *tructure i* 5@3 a po**i/le margi+al ta) rate i*:a. 0@./. >5@.c. 4>@.,. +ot a/le to /e ,etermi+e,.100 Which o- the -ollowi+g cou+trie* ha* the highe*t a.erage ta) rate relati.e to 8A$?a. Bapa+/. Swe,e+c. ;cela+,,. 6+ite, Ci+g,om