Chapter 10

5. What occurs when tax revenues exceed government spending?
7. What refers to how the burden of taxation is distributed?
9. What is paid by a buyer, as a percentage of the sale price of an item?
10. In a _________________, households pay the same percentage of their incomes in taxes regardless of their income level.
11. _______________________ is the view that choices made by a consumer reflect his or her true preferences, and outsiders, including the government, should not interfere with these choices.
12. What refers to the misuse of public funds or the distortion of the allocation of resources for personal gain?
16. What refers to direct actions by the government to control the amount of a certain activity?
17. What tax system involves lower tax rates on those earning higher incomes?
18. What occurs when tax revenues do not cover government spending?
19. What is the view that consumers do not always know what is best for them, and the government should encourage or induce them to change their actions?
20. What are taxes paid by firms to the government from their profits?
21. What refers to inefficiencies caused by a government’s interventions?
23. What refers to how much of the last dollar earned is paid out in tax?

1. What is a tax on the wages of workers (also known as social insurance tax)?
2. What are taxes paid when purchasing a specific good?
3. ___________ for a household is given by total taxes paid divided by total income.
4. What is the money a government collects through a tax?
6. What refers to the set of insurance, regulation, and transfer programs operated by the government, including unemployment benefits, pensions, and government-run and financed healthcare?
8. ______________________ refers to the trade-off between ensuring an equitable allocation of resources (equity) and increasing social surplus or total output (efficiency).
13. What involves higher tax rates on those earning higher incomes?
14. A ______________ is a cap or maximum price of a market good.
15. What occurs when the government gives part of its tax revenue to some individual or group?
22. A ______________ is a lower limit on the price of a market good.
24. _____________ refers to actions by the federal or local government directed at influencing market outcomes, such as the quantity traded of a good or service, its price, or its quality and safety.