Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

17.1 income and payroll taxes

01/12/2021 Client: muhammad11 Deadline: 2 Day

1
ECO 102 Exam 6 26 questions worth 4 points each: Perfect Exam = 104%

1) Consider the following game. You roll a six-sided die and each time you roll a 6, you get $30. For all other outcomes you pay $6. What is the expected value of the game?
A) -$6
B) $0
C) $6
D) $30

Refer to the information in Figure 17.1 below to answer the questions that follow.

Figure 17.1

2) Refer to Figure 17.1. John has two job offers when he graduates from college. John views the offers as identical, except for the salary terms. The first offer is at a fixed annual salary of $50,000. The second offer is at a fixed salary of $20,000 plus a possible bonus of $60,000. John believes that he has a 50-50 chance of earning the bonus. What is the expected value of John's income for each job offer?
A) $50,000 for the first offer and $80,000 for the second offer
B) $50,000 for the first offer and $50,000 for the second offer
C) $50,000 for the first offer and $30,000 for the second offer
D) $25,000 for the first offer and $50,000 for the second offer

3) Refer to Figure 17.1. John has two job offers when he graduates from college. John views the offers as identical, except for the salary terms. The first offer is at a fixed annual salary of $50,000. The second offer is at a fixed salary of $20,000 plus a possible bonus of $60,000. John believes that he has a 50-50 chance of earning the bonus. What is John's expected utility for each job offer?
A) expected utility of 200 for the first offer and expected utility of 218 for the second offer
B) expected utility of 200 for the first offer and expected utility of 110 for the second offer
C) expected utility of 200 for the first offer and expected utility of 164 for the second offer
D) expected utility of 100 for the first offer and expected utility of 164 for the second offer

4) Refer to Figure 17.1. Suppose John's utility from income is given in the figure. From this we would say that John is ________.
A) risk neutral
B) risk averse
C) risk loving
D) a risk taker

5) Mark has two job offers when he graduates from college. Mark views the offers as identical, except for the salary terms. The first offer is at a fixed annual salary of $40,000. The second offer is at a fixed salary of $20,000 plus a possible bonus of $40,000. Mark believes that he has a 50-50 chance of earning the bonus. If Mark takes the offer that maximizes his expected utility
and is risk loving, which job offer will he choose?
A) Mark will take the first offer.
B) Mark will take the second offer.
C) Mark is indifferent between the offers -- both yield the same expected utility.
D) Indeterminate from the given information.

Refer to the information provided in Figure 17.2 below to answer the questions that follow.

Figure 17.2

6) Refer to Figure 17.2. Suppose Sam's utility from income is given in the diagram. From this we would say that Sam is ________.
A) risk neutral
B) risk loving
C) risk averse
D) a risk taker

7) All of the following statements about asymmetric information are true EXCEPT:
A) Asymmetric information occurs when one party to a transaction has relevant information to the transaction that the other party does not have.
B) Asymmetric information creates market failures because it makes it harder for individuals to engage in transactions that would take place in the presence of perfect information.
C) Asymmetric information can only be solved through government intervention.
D) Asymmetric information occurs in the market for used cars and in the insurance market.

8) You are in the market for a used 2006 Honda Accord. You know that half of the 2006 Accords are lemons and half are peaches. If you could be assured that the Accord you were buying was a peach, you would be willing to pay up to $10,000. On the other hand, you would only be willing to pay $2,000 for a lemon. You have no ability to discern whether any particular Accord is a lemon or a peach. Sellers of Accords, on the other hand, are likely to know whether their particular car is a lemon or a peach. Suppose sellers of lemons will sell their cars for $1,500 or more and peach sellers will be willing to sell their cars for $8,500 or more. You are willing to offer _____ for a car of unknown quality and _______ are willing to sell you their car.
A) $2,000; lemon owners only
B) $5,000; lemon owners only
C) $6,000; lemon owners only
D) $8,500; both lemon and peach owners

9) As a result of adverse selection problems in the health insurance market, it is likely that over time
A) fewer healthy people will be insured.
B) fewer unhealthy people will be insured.
C) fewer healthy and unhealthy people will be insured.
D) more healthy people will be insured.

10) You cause an automobile liability insurance company to face a moral hazard problem when you take ________ driving precautions ________ you buy automobile liability insurance from the company.
A) fewer; after
B) more; after
C) fewer; before
D) the same; before and after

11) A tax whose burden, expressed as a percentage of income, falls as income increases is a
A) regressive tax.
B) progressive tax.
C) proportional tax.
D) benefits-received tax.

12) The excise tax is ________.
A) progressive
B) regressive
C) proportional
D) an ability-to-pay tax

13) A theory of fairness that holds that taxpayers should contribute to the government in proportion to the benefits they receive from public expenditures is the
A) ability-to-pay principle.
B) equity principle.
C) benefits-received principle.
D) equality-for-all principle.

14) The benefits-received principle of taxation is not often used because
A) if tax payments are linked to the benefits received, taxpayers tend to overstate the benefits that they receive from public goods.
B) it leads to an overproduction of public goods.
C) it is difficult to determine the values individual taxpayers place on goods and services that are produced using tax revenue.
D) it leads to less equality in the after-tax distribution of income.

15) A theory of taxation that states that citizens should bear tax burdens in line with their ability
to pay taxes is the
A) ability-to-pay principle.
B) equity principle.
C) benefits-received principle.
D) equal payment principle.

16) The progressive income tax is a tax based on the
A) benefits-received principle.
B) tax equity principle.
C) efficiency tax principle.
D) ability-to-pay principle.

17) Tax incidence is the ________.
A) behavior of shifting the tax to another party
B) ultimate distribution of a taxʹs burden
C) structure of the tax
D) measure of the impact the tax has on employment and output

18) Firms may react to a payroll tax by
A) substituting labor for capital.
B) increasing their output.
C) shifting to more capital intensive techniques.
D) always increasing worker's wages by the total amount of the tax.

Refer to the information provided in Figure 19.1 below to answer the questions that follow.

Figure 19.1
19) Refer to Figure 19.1. Prior to the imposition of a payroll tax, this labor market was in equilibrium at a wage of ________ and employment of ________ workers.
A) $5.00; 500
B) $7.00; 800
C) $10.00; 700
D) $12.00; 650

20) Refer to Figure 19.1. The payroll tax imposed is ________ per unit of labor.
A) $2
B) $3
C) $5
D) $10

21) Refer to Figure 19.1. After firms can respond to the payroll tax, the per-hour wage paid by firms equals
A) $12.
B) $10.
C) $7.
D) $5.

22) Refer to Figure 19.1. After firms can respond to the payroll tax, the workers will take home a wage of
A) $12.
B) $10.
C) $7.
D) $5.

23) If labor supply is very elastic, the payroll tax is
A) borne mostly by the employer.
B) borne entirely by the employer.
C) borne mostly by the workers.
D) split evenly between the employer and the workers.

24) The ________ states that all else equal, taxes that are neutral with respect to economic decisions are generally preferable to taxes that distort economic decisions.
A) the principle of neutrality.
B) the principle of second best.
C) the principle of excess burden.
D) the law of tax incidence.

25) Which of the following taxes would impose the smallest excess burden on an individual?
A) a tax on Diet Pepsi
B) a tax on all diet beverages
C) a tax on all soft drinks
D) a tax on all types of beverages including water

26) What circumstances favor nonneutral taxes?
A) only the presence of externalities
B) only the presence of other distortionary taxes
C) both the presences of externalities and other distorting taxes
D) both inelastic demand and the presence of externalities

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Chartered Accountant
Supreme Essay Writer
Innovative Writer
Top Academic Guru
Financial Hub
Quick Mentor
Writer Writer Name Offer Chat
Chartered Accountant

ONLINE

Chartered Accountant

I have worked on wide variety of research papers including; Analytical research paper, Argumentative research paper, Interpretative research, experimental research etc.

$24 Chat With Writer
Supreme Essay Writer

ONLINE

Supreme Essay Writer

I have written research reports, assignments, thesis, research proposals, and dissertations for different level students and on different subjects.

$15 Chat With Writer
Innovative Writer

ONLINE

Innovative Writer

I find your project quite stimulating and related to my profession. I can surely contribute you with your project.

$45 Chat With Writer
Top Academic Guru

ONLINE

Top Academic Guru

I find your project quite stimulating and related to my profession. I can surely contribute you with your project.

$24 Chat With Writer
Financial Hub

ONLINE

Financial Hub

As an experienced writer, I have extensive experience in business writing, report writing, business profile writing, writing business reports and business plans for my clients.

$17 Chat With Writer
Quick Mentor

ONLINE

Quick Mentor

I have assisted scholars, business persons, startups, entrepreneurs, marketers, managers etc in their, pitches, presentations, market research, business plans etc.

$41 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Sports house captain speech - Cytosine arabinoside mechanism of action - Clancy of the overflow poem pdf - Free flashcards with pictures - Extort gold from merchants eso - Compound and mixture quiz - 1 to the power of 10 - Week 4 - Lattice enthalpy of formation - Computer Specifications - Ramayana book one boyhood valmiki - One step backward taken robert frost - February 5 holidays & observances - Preterite ar verbs worksheet answers - What is the method of joints - Torrid apex vs ghost whisperer - Veriti thermal cycler ramp rate - Grc spray machine india - History of human services timeline - Www cengagebrain com shop terms html - Book ; The science of Psychology Edition 5 by Laura King - Cookie chronicles accounting - Indian camp ernest hemingway - Frindle by andrew clements pdf - Vivekananda quotes on fear - Answer the following questions - Cost of walnuts per pound - Lightcycler 480 sealing foil - Dicussion - Toss the turtle cheat codes - The walt disney company the entertainment king case pdf - Critical evaluation essay thesis statement and outline - Research strategies badke 5th edition pdf - Dallat funeral directors ballycastle - Bending light simulation lab answers - Hist Blog - Tis the season to be jolly mp3 - 110 plantain road shailer park - Do jeremy and bonnie get together - Culture competency and advocacy - Project Part 2- Info Security & Risk Mgmt (ISOL-533) - Summerland credit union term deposit rates - Project 3 - What is the central idea of a speech - The vanishing coin comprehension questions - Lost racing pigeon list - Listen to forth one - Philosophy 2 First Paper - Domino's pizza pricing strategy - Douglas engineering wood splitters - Matlab Easy Question - Nessus 78479 - Evolution of organisation theory - Man smacks the soul outta girl on the ny subway - How is fate shown in macbeth - Everyday in thai language - Ceres gardening case study solution - Vulnerabilities of wireless lan - First cornerstone bank king of prussia pa - Zero mean unit variance normalization matlab - How to write an executive summary for a hospital - Reclaiming youth at risk - Socomec ups default password - 2003 ford mustang boss 351 v10 experimental - Conflict Managment Paper 8 - How many public baths were there in ancient rome - How to insert tables and figures in table of contents - A biological community's productivity is a measure of - Canon pixma mg3000 series installation - Giraffe kissing baby perth zoo - Critical reasoning - The drinking water needs of a production facility - Csec english sba plan of investigation - Discussion post - Is 44 a prime or composite number - Essay - Differences between fahrenheit 451 and today's society - Examples of education in to kill a mockingbird - Defense performance management and appraisal program - Information governance failures - Dividend discount model calculator excel - Us bank cocoa beach fl - Maxwell williams teapot myer - Living social atlanta airport parking - 11 lbs in kg - 39 coonah parade riverview - Course Description:Microbiology - Cash flow statement hsc - Cultural immersion- Buddhism interview - Assessment in special education a practical approach 4th edition pdf - Fiddes payne cajun seasoning - Story generator using vocab words - Broadbill corporation a calendar year c corporation - Lego systems inc fort worth tx - Mikrotik switch trunk port - The verbal escalation continuum - Week 1 Discussion - Bus 475 week 4 apply project plan - CMGT - Change the voice sentences with answers