U.S. taxpayers spend many hours during the year maintaining records for tax purposes and preparing their income tax returns. This administrative cost
A) is part of the deadweight loss of taxation.
B) is larger for individuals in the lowest income quintile than for individuals in the highest income quintile.
C) is equal to the value of consumer surplus associated with the income tax system.
D) can be claimed as a deduction on income tax returns.
A
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Total economic profit is
A) total revenue minus total opportunity cost. B) total revenue divided by total cost. C) marginal revenue minus marginal cost. D) marginal revenue divided by marginal cost.
"It would be an undue hardship to require people whose income is below $15,000 per year to pay income taxes." This statement reflects which of the following principles for a tax?
a. Ability-to-pay b. Inexpensive-to-collect c. Fairness of contribution d. Benefits-received