2. Concepts 1Concepts 2 Name That Externality Misc Tax Terms & Graphs 10 20 30 40 50

3. Question 1 - 10 The amount taken out of your paycheck every week is called….

4. Answer 1 – 10 Withholding.

5. Question 1 - 20 Give an example (not definition) of a free rider.

6. Answer 1 – 20

7. Question 1 - 30 What is a free rider?

8. Answer 1 – 30 Benefits, doesn’t pay anything for what they use.

9. Question 1 - 40 A tax rate that increases as the tax base increases in an example of what kind of tax rate structure?

10. Answer 1 – 40 Progressive

11. Question 1 - 50 A tax rate that remains the same as the tax base increases in an example of what kind of tax rate structure?

12. Answer 1 – 50 Proportional

13. Question 2 - 10 A tax rate that decreases as income increases is known as….

14. Answer 2 – 10 Regressive

15. Question 2 - 20 The federal income tax is an example of which tax structure?

16. Answer 2 – 20 Progressive

17. Question 2 - 30 Which tax structure has the most negative effective on low income folks?

18. Answer 2 – 30 Regressive

19. Question 2 - 40 Sales tax is an example of which tax structure? Is there a second way to view the sales tax?

20. Answer 2 – 40 Regressive, proportional

21. Question 2 - 50 What is the largest source of federal revenue?

22. Answer 2 – 50 Personal income tax.

23. Question 3 - 10 List a negative externality of someone smoking next to you.

24. Answer 3 – 10

25. Question 3 - 20 List a positive externality of planting flowers in the neighborhood.

26. Answer 3 – 20

27. Question 3 - 30 List a negative externality of driving past a power plant.

28. Answer 3 – 30

29. Question 3 - 40 What is a negative externality of driving?

30. Answer 3 – 40 Air pollution

31. Question 3 - 50 List a positive and negative externality of building an airport in Anthem.

32. Answer 3 – 50

33. Question 4 - 10 A proportional tax is also known as a…

34. Answer 4 – 10 Flat tax.

35. Question 4 - 20 Give an example of regressive tax.

36. Answer 4 – 20 Social security, sales tax, excise tax on jewelry, etc.

37. Question 4 - 30 Corporate income tax falls under which tax structure?

38. Answer 4 – 30 Progressive.

39. Question 4 - 40 A tax on imports is called…

40. Answer 4 – 40 Tariffs

41. Question 4 - 50 What is a tax credit?

42. Answer 4 – 50 Money given to organizations that you later deduct from your taxable income.

43. Question 5 - 10 What are the characteristics of a good tax?

44. Answer 5 – 10 Simplicity, Equity, Efficiency, Certainty

45. Question 5 – 20 – DAILY DOUBLE!!! List the roles of government in our economy.

46. Answer 5 – 20 1.Maintaining the legal and social framework 2.Providing public goods and services 3.Maintaining competition 4.Redistributing income 5.Correcting for externalities 6.Stabilizing the economy

47. Question 5 - 30 Draw a progressive tax graph.

48. Answer 5 – 30 Starts out low gets higher.

49. Question 5 - 40 Draw a regressive tax graph.

50. Answer 5 – 40 Starts high, goes low.

51. Question 5 - 50 Draw a proportional tax graph.

52. Answer 5 – 50 Horizontal line.