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Economics: Concepts and Choices

Holt Mcdougal

Chapter 14

Government Revenue and Spending - all with Video Answers

Educators

Section 1

How Taxes Work

05:15

Problem 1

Explain the difference between the terms in each of these pairs.
a. $\operatorname{tax}$ revenue
b. sales tax property tax
c. progressive tax regressive tax

Tommy Nguyen
Tommy Nguyen
Numerade Educator
00:52

Problem 2

Why do governments collect taxes?

Kaylee Mcclellan
Kaylee Mcclellan
Numerade Educator
01:05

Problem 3

What are the four most used tax bases?

Kaylee Mcclellan
Kaylee Mcclellan
Numerade Educator
01:46

Problem 4

How does demand elasticity influence the incidence of a tax?

Kaylee Mcclellan
Kaylee Mcclellan
Numerade Educator
00:57

Problem 5

What is the purpose of a tax incentive?

Kaylee Mcclellan
Kaylee Mcclellan
Numerade Educator
04:17

Problem 6

What are the major criteria for a good tax system? Refer to your completed cluster diagram.

Tommy Nguyen
Tommy Nguyen
Numerade Educator
01:22

Problem 7

Colorado has a state income tax of 4.63 percent on all income and a sales tax of 2.9 percent. Are these taxes proportional, progressive, or regressive? Give reasons for your answers.

Tommy Nguyen
Tommy Nguyen
Numerade Educator
01:58

Problem 8

In $2005,$ Hurricane Katrina destroyed many homes and businesses along the Gulf Coast of the United States. How did this natural disaster affect the tax bases in communities in that region?

Tommy Nguyen
Tommy Nguyen
Numerade Educator
05:23

Problem 9

Where does the burden of an increase in a sin tax usually fall? Illustrate your answer with supply and demand curves.

Tommy Nguyen
Tommy Nguyen
Numerade Educator
03:45

Problem 10

Demand for insulin is highly inelastic. Would the government be likely to use a tax on insulin as a tax incentive? Why or why not?

Tommy Nguyen
Tommy Nguyen
Numerade Educator
03:46

Problem 11

Pennsylvania and Illinois each have state income taxes of about 3 percent of income. In llinois, the first $\$ 2,000$ of individual income is exempt from taxation. Pennsylvania has no similar individual tax exemptions. Is one state's tax more progressive than the other? Why or why not? (You'll learn more about tax exemptions in Section $2 .)$

Tommy Nguyen
Tommy Nguyen
Numerade Educator