Tax base b the hst will be a value

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Unformatted text preview: in the labour market. Which of the following statements about reducing the clawback rate is FALSE? A) Reducing the clawback rate will make the substitution effect of the welfare program smaller. B) Reducing the clawback rate will make some people increase their hours worked. C) Reducing the clawback rate will make some people decrease their hours worked. D) Reducing the clawback rate will have no effect on some people’s hours. E) Reducing the clawback rate will make some people who previously chose to take up the welfare program decide against participating. 6) Which of the following statements about a consumption tax is FALSE? A) Switching to such a tax from an income tax would likely be opposed by the elderly. B) A consumption tax would likely distort saving less than an income tax. C) A consumption tax could not be progressive. D) A Value Added Tax (VAT) is a form of consumption tax. E) A consumption tax would cause deadweight loss. 7) Which of the following statements about lump- sum taxation is TRUE? Page 4 Econ 325 CRN: 14794 Section A01 A) Lump- sum taxation is a form of progressive taxation. B) Lump- sum taxation is a form of proportional taxation. C) Lump- sum taxation is equitable. D) Lump- sum taxation is efficient. E) Lump- sum taxation is commonly used in real- world policy. 8) Which of the following statements about the Canadian Healthcare system is FALSE? A) Provinces have the authority to make healthcare policy decisions. B) The Federal government attempts to influence provincial policy by making grants to provinces that come with conditions attached. C) The Canada Health Act requires (as a condition of federal funding) that healthcare be universally available (to Canadians). D) In spite of greater government involvement in the healthcare system in Canada, Canada as a nation spends a smaller fraction of GDP on healthcare than the US does. E) Government- provided healthcare eliminates all inefficiencies that exist in a private system of healthcare. 9) Suppose the marginal tax rate on the first $10,000 of income is 10% and the marginal tax rate on the next $10,000 of income is 20%. What is the tax liability of someone who earns $14,000 a year? Assume there is no “basic personal amount...
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This document was uploaded on 09/17/2013.

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