DOWNLOAD THE Test Bank for Principles of Taxation for Business and Invest
g g g g g g g g g g g
ment Planning 2020 23rd Edition Jones
g g g g g
PrinciplesgofgTaxationgforgBusinessgandgInvestmentgPlanning,g23eg(Jones)g
Chapterg2 PolicygStandardsgforgagGoodgTax
1) Agtaxgmeetsgthegstandardgofgsufficiencygifgitgisgeasygforgpeoplegtogpaygthegtax.
Answer:g FALSEgDif
ficulty:g1gEasy
Topic:g g StaticgversusgDynamicgForecasting
LearninggObjective:g 02-
01gExplaingthegconceptgofgsufficiencygofgaggoodgtax.gAccessibility:g KeyboardgNavigatio
n
Type:g StaticgGradabl
e:g automatic
2) Thegfederalggovernmentgisgnotgrequiredgtogpayginterestgongthegnationalgdebt.
Answer:g FALSEgDif
ficulty:g1gEasy
Topic:g g StaticgversusgDynamicgForecasting
LearninggObjective:g 02-
01gExplaingthegconceptgofgsufficiencygofgaggoodgtax.gAccessibility:g KeyboardgNavigatio
n
Type:g StaticgGradabl
e:g automatic
3) Agstaticgforecastgofgthegrevenuegeffectgofgagtaxgrategchangegassumesgthatgthegtaxgbasegdoesgnotgc
hange.
Answer:g TRUEgDiffi
culty:g1gEasy
Topic:g g StaticgversusgDynamicgForecasting
LearninggObjective:g 02-
01gExplaingthegconceptgofgsufficiencygofgaggoodgtax.gAccessibility:g KeyboardgNavigatio
n
Type:g StaticgGradabl
e:g automatic
4) Agdynamicgforecastgofgthegrevenuegeffectgofgagtaxgrategchangegassumesgthatgthegtaxgbasegdoesgn
otgchange.
Answer:g FALSEgDif
ficulty:g1gEasy
Topic:g g StaticgversusgDynamicgForecasting
LearninggObjective:g 02-
01gExplaingthegconceptgofgsufficiencygofgaggoodgtax.gAccessibility:g KeyboardgNavigatio
n
Type:g StaticgGradabl
1
Copyrightg2020g©gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGraw-
HillgEducation.
mynursytest.store
,DOWNLOAD THE Test Bank for Principles of Taxation for Business and Invest
g g g g g g g g g g g
ment Planning 2020 23rd Edition Jones
g g g g g
e:g automatic
2
Copyrightg2020g©gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGraw-
HillgEducation.
mynursytest.store
,DOWNLOAD THE Test Bank for Principles of Taxation for Business and Invest
g g g g g g g g g g g
ment Planning 2020 23rd Edition Jones
g g g g g
5) ThegfederalgSocialgSecuritygtaxgburdengongemployeesghasgnotgincreasedgsinceg1990gbecausegthegt
axgrateghasgnotgincreasedgsincegthatgyear.
Answer:g g FALSE
Explanation:g ThegSocialgSecuritygtaxgburdengincreasesgannuallygbecausegthegtaxgbasegincreasesgan
nually.
Difficulty:g2gMedium
Topic:g g StaticgversusgDynamicgForecasting
LearninggObjective:g 02-
01gExplaingthegconceptgofgsufficiencygofgaggoodgtax.gAccessibility:g KeyboardgNavigatio
n
Type:g StaticgGradabl
e:g automatic
6) IfgStategHgincreasesgitsgsalesgtaxgrategbyg1%,gitsgsalesgtaxgrevenuegmustgalsogincreasegbyg1%.
Answer:g FALSEgDif
ficulty:g1gEasy
Topic:g g StaticgversusgDynamicgForecasting
LearninggObjective:g 02-
01gExplaingthegconceptgofgsufficiencygofgaggoodgtax.gAccessibility:g KeyboardgNavigatio
n
Type:g StaticgGradabl
e:g automatic
7) ThegcitygofgBernegrecentlygenactedgag10%gtaxgongthegpricegofgagsubwaygticket.gConsequently,g
Mrs.gLanegnowgwalksgtogworkginsteadgofgtakinggthegsubway.gHergbehaviorgillustratesgthegsubstitu
tiongeffectgofgagtaxgincrease.
Answer:g g TRUE
Explanation:g Mrs.gLanegsubstitutedgagnontaxablegactivitygforgagtaxablegactivity.gDifficult
y:g3gHard
Topic:g g BehavioralgResponsesgtogRategChanges
LearninggObjective:g 02-
02gDifferentiategbetweengthegincomegeffectgandgthegsubstitutiongeffect.gAccessibility:g KeyboardgN
avigation
Type:g StaticgGradabl
e:g automatic
8) JurisdictiongPgrecentlygincreasedgitsgincomegtaxgrate.gAgtaxpayergwhogreactsgtogthegincreasegbyg
workingghardergtogearngmoregincomegisgdemonstratinggthegincomegeffectgofgthegrategincrease.
Answer:g TRUEgDiffi
culty:g1gEasy
Topic:g g BehavioralgResponsesgtogRategChanges
LearninggObjective:g 02-
02gDifferentiategbetweengthegincomegeffectgandgthegsubstitutiongeffect.gAccessibility:g KeyboardgN
3
Copyrightg2020g©gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGraw-
HillgEducation.
mynursytest.store
, DOWNLOAD THE Test Bank for Principles of Taxation for Business and Invest
g g g g g g g g g g g
ment Planning 2020 23rd Edition Jones
g g g g g
avigation
Type:g StaticgGradabl
e:g automatic
4
Copyrightg2020g©gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGraw-
HillgEducation.
mynursytest.store
g g g g g g g g g g g
ment Planning 2020 23rd Edition Jones
g g g g g
PrinciplesgofgTaxationgforgBusinessgandgInvestmentgPlanning,g23eg(Jones)g
Chapterg2 PolicygStandardsgforgagGoodgTax
1) Agtaxgmeetsgthegstandardgofgsufficiencygifgitgisgeasygforgpeoplegtogpaygthegtax.
Answer:g FALSEgDif
ficulty:g1gEasy
Topic:g g StaticgversusgDynamicgForecasting
LearninggObjective:g 02-
01gExplaingthegconceptgofgsufficiencygofgaggoodgtax.gAccessibility:g KeyboardgNavigatio
n
Type:g StaticgGradabl
e:g automatic
2) Thegfederalggovernmentgisgnotgrequiredgtogpayginterestgongthegnationalgdebt.
Answer:g FALSEgDif
ficulty:g1gEasy
Topic:g g StaticgversusgDynamicgForecasting
LearninggObjective:g 02-
01gExplaingthegconceptgofgsufficiencygofgaggoodgtax.gAccessibility:g KeyboardgNavigatio
n
Type:g StaticgGradabl
e:g automatic
3) Agstaticgforecastgofgthegrevenuegeffectgofgagtaxgrategchangegassumesgthatgthegtaxgbasegdoesgnotgc
hange.
Answer:g TRUEgDiffi
culty:g1gEasy
Topic:g g StaticgversusgDynamicgForecasting
LearninggObjective:g 02-
01gExplaingthegconceptgofgsufficiencygofgaggoodgtax.gAccessibility:g KeyboardgNavigatio
n
Type:g StaticgGradabl
e:g automatic
4) Agdynamicgforecastgofgthegrevenuegeffectgofgagtaxgrategchangegassumesgthatgthegtaxgbasegdoesgn
otgchange.
Answer:g FALSEgDif
ficulty:g1gEasy
Topic:g g StaticgversusgDynamicgForecasting
LearninggObjective:g 02-
01gExplaingthegconceptgofgsufficiencygofgaggoodgtax.gAccessibility:g KeyboardgNavigatio
n
Type:g StaticgGradabl
1
Copyrightg2020g©gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGraw-
HillgEducation.
mynursytest.store
,DOWNLOAD THE Test Bank for Principles of Taxation for Business and Invest
g g g g g g g g g g g
ment Planning 2020 23rd Edition Jones
g g g g g
e:g automatic
2
Copyrightg2020g©gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGraw-
HillgEducation.
mynursytest.store
,DOWNLOAD THE Test Bank for Principles of Taxation for Business and Invest
g g g g g g g g g g g
ment Planning 2020 23rd Edition Jones
g g g g g
5) ThegfederalgSocialgSecuritygtaxgburdengongemployeesghasgnotgincreasedgsinceg1990gbecausegthegt
axgrateghasgnotgincreasedgsincegthatgyear.
Answer:g g FALSE
Explanation:g ThegSocialgSecuritygtaxgburdengincreasesgannuallygbecausegthegtaxgbasegincreasesgan
nually.
Difficulty:g2gMedium
Topic:g g StaticgversusgDynamicgForecasting
LearninggObjective:g 02-
01gExplaingthegconceptgofgsufficiencygofgaggoodgtax.gAccessibility:g KeyboardgNavigatio
n
Type:g StaticgGradabl
e:g automatic
6) IfgStategHgincreasesgitsgsalesgtaxgrategbyg1%,gitsgsalesgtaxgrevenuegmustgalsogincreasegbyg1%.
Answer:g FALSEgDif
ficulty:g1gEasy
Topic:g g StaticgversusgDynamicgForecasting
LearninggObjective:g 02-
01gExplaingthegconceptgofgsufficiencygofgaggoodgtax.gAccessibility:g KeyboardgNavigatio
n
Type:g StaticgGradabl
e:g automatic
7) ThegcitygofgBernegrecentlygenactedgag10%gtaxgongthegpricegofgagsubwaygticket.gConsequently,g
Mrs.gLanegnowgwalksgtogworkginsteadgofgtakinggthegsubway.gHergbehaviorgillustratesgthegsubstitu
tiongeffectgofgagtaxgincrease.
Answer:g g TRUE
Explanation:g Mrs.gLanegsubstitutedgagnontaxablegactivitygforgagtaxablegactivity.gDifficult
y:g3gHard
Topic:g g BehavioralgResponsesgtogRategChanges
LearninggObjective:g 02-
02gDifferentiategbetweengthegincomegeffectgandgthegsubstitutiongeffect.gAccessibility:g KeyboardgN
avigation
Type:g StaticgGradabl
e:g automatic
8) JurisdictiongPgrecentlygincreasedgitsgincomegtaxgrate.gAgtaxpayergwhogreactsgtogthegincreasegbyg
workingghardergtogearngmoregincomegisgdemonstratinggthegincomegeffectgofgthegrategincrease.
Answer:g TRUEgDiffi
culty:g1gEasy
Topic:g g BehavioralgResponsesgtogRategChanges
LearninggObjective:g 02-
02gDifferentiategbetweengthegincomegeffectgandgthegsubstitutiongeffect.gAccessibility:g KeyboardgN
3
Copyrightg2020g©gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGraw-
HillgEducation.
mynursytest.store
, DOWNLOAD THE Test Bank for Principles of Taxation for Business and Invest
g g g g g g g g g g g
ment Planning 2020 23rd Edition Jones
g g g g g
avigation
Type:g StaticgGradabl
e:g automatic
4
Copyrightg2020g©gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGraw-
HillgEducation.
mynursytest.store
