When Considering Changes in Tax Policy,economists Usually Focus on
When considering changes in tax policy,economists usually focus on
A) the average tax rate.
B) the marginal tax rate.
C) people's willingness to pay taxes.
D) people's ability to pay taxes.
The marginal tax rate is
A) the amount of taxes paid as a percentage of income.
B) the amount of per-capita taxes paid.
C) the amount of taxes paid as a percentage of gross domestic product (GDP).
D) the fraction of each additional dollar of income that must be paid in taxes.
An income tax system is ________ if marginal tax rates increase as income increases.
The excess burden of a tax
A) measures the efficiency loss to the economy that results from a tax, causing a reduction in the quantity of goods and services produced.
B) is measured by the administrative costs required to implement a tax system.
C) is a measure of the hardship imposed on low-income individuals in a society.
D) is a measure of the foregone consumption as a result of having to pay taxes.