Question

Question Completion Status QUESTION 25 Which of these is most influential on your decision to work extra hours at your job o the averge tax rate the total tax bill the marginal tax rate e the lump sum tax rate QUESTION 26 As tax laws become more complex compliance costs are likely to decrease e the government will collect more tax revenue o tax evasion and avoidance will decrease e the administrative burden of taxes will increase QUESTION 27 If the governrhent imposes a $3000 tax on everyone, the tax would be: an income tax ea consumption tax a lump-sum tax a marginal tax QUESTION 28 Which of these tax systems does not allow for vertical equity (different treatment of different people) o proportional tax progressive tax o regressive tax o lump-sum tax QUESTION 29 When a tax is justified on the basis that taxpayers receive specific govermment services, the tax is considered a horizontally equitable burden is minimized o satisfies the benefits principle is considered vertically equitable QUESTION 30 The argument that each person should pay taxes according to how well the individual can shoulder the burden is called a the ability to pay principle o the equity principle o the benefits principle e regressive QUESTION 31 Click Save and Submit to save and nbmit. Click Save All Ansncers to save all anseers

Answer 1

25. Option C is correct.

This is because to work extra hour, the extra rate of taxation on the income will be considered, which is given by marginal tax rate.

26. Option D is correct.

As the complexity of taxes increases, the complaince cost increases and the cost to administer that tax would increase.

27. Option C is correct.

Lump-sum tax is a fixed amount of tax that needs to be paid by the citizens of a country.

28. Option D is correct.

Verticla equity relies on principle that those who have the ability to pay higher taxes should come under higher income tax bracket.