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Assignment Print View Page 1 of 16 award: 1.00 point 1. The concept of tax sufficiency: Suggests the need for tax forecasting ??? Suggests that a government should estimate how taxpayers will respond to changes in the current tax structure ??? Suggests that a government should consider the income and substitution effects when changing tax rates ??? All of the above ??? None of these ??? award: 1.00 point 2. The substitution effect: Predicts that taxpayers will work harder to pay for consumer products when tax rates increase ??? Is one of the effects considered in static forecasting ??? Results in the government collecting more aggregate tax revenue than under the income effect ??? Is typically more descriptive for taxpayers with lower disposable income ??? None of these ??? award: 1.00 point 3. Which of the following federal government actions would make sense if a tax system fails to provide sufficient tax revenue? Issue treasury bonds ??? Cut funding to various federal projects ??? Increase federal spending ??? A and B but not C ??? None of these ??? award: 1.00 point 4. Geronimo files his tax return as a head of household for year 2012. If his taxable income is $72,000, what is his average tax rate (rounded)? 17.56% ??? 14.24% ??? 19.48% ??? 25.00% ??? None of these ??? award: 1.00 point 5. Al believes that SUVs have negative social and environmental effects because of their increased carbon monoxide emissions. He proposes eliminating sales taxes on smaller automobiles in favor of higher sales taxes levied on SUVs. Al performs some calculations and comes to the conclusion that based on the current number of SUVs owned in the U.S. exactly the same amount of total sales tax will be collected under his reformed system. Which of the following concepts explains why Al’s idea may not work? The ability to pay principle ??? Horizontal equity ??? Substitution effect ??? Vertical equity ??? None of these ??? award: 1.00 point …

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