The tax that generates the greatest proportion of government revenue in Canada is O A. the property tax. O B. the income tax. O C. the payroll tax. O D. the provincial sales tax. O E. the goods and services tax.The table below shows 2021 federal income-tax rates in Canada. Taxable Income Marginal Tax Rate $0-$49,020 15% $49,021-$98,040 20.5% $98,041-$151,978 26% $151,979-$216,511 29% $216,512 and over 33% TABLE 18-1 Refer to Table 18-1. If an individual had a taxable income of $175,000, how much federal tax would be due from the portion of earnings taxed at the maximum rate of 33%? O A. $57,750 O B. $1,817 O C. $0 O D. $38,725 O E. $8,848From the perspective of individuals, the goods and services tax (GST) applies to O A. saving rather than expenditure. O B. profits for self-employed individuals. O C. total taxable income. O D. additional income earned. O E. expenditure rather than income.The goods and services tax (GST) in Canada is an example of a(n) O A. value-added tax. O B. invisible tax. O C. proportional tax. O D. progressive tax. O E. excise tax.The most important source of revenue for the Canadian federal government is taxes; the most important source of revenue for Canadian municipal governments is taxes. E) Q A. sales; property C) B. corporate; sales C) C. property; payroll C) D. income; property 0 E. income; excise Suppose a firm buys $1,000 worth of inputs from other firms, hires $1,000 worth of labour services, and has sales revenue of $2, 500. The firm's resulting profit is $500. According to a valueadded tax such as the GST, this firm would pay taxes on Q A. $1,000. 0 B. $2,500. 0 0. $4,500. 0 D. $500. 0 E. $1,500. To which of the following is the Goods and Service Tax (GST) applied? O A. each firm's contribution to the value of final output O B. the retail value of all goods O C. the total value of a firm's output O D. the total value of a good at each step of the production process O E. the value of a firm's inputs in its production processConsider the concept of equity in taxation. What is the "benefit principle"? O A. the principle that users of public goods are taxed in proportion to their use of them O B. the principle that users of public goods are taxed in proportion to their ability to pay O C. the main principle on which horizontal equity is based O D. the main principle on which all tax systems are based O E. the main principle on which the Canadian tax system is basedWhich of the following is considered to be the "direct burden" of a tax? O A. the administrative costs associated with collecting the tax O B. the income tax that is deducted directly from salary income O C. the total revenue collected by the tax O D. the administrative costs associated with paying the tax O E. the tax-deductible expenses for the person who pays the taxWhich of the following is considered to be the "excess burden" of a tax? O A. the deadweight loss created by the tax O B. the administrative costs associated with collecting the tax O C. the total revenue collected by the tax O D. the administrative costs associated with paying the tax O E. the income tax that is deducted directly from salary incomeAn important objective in designing a tax system is to O A. design a system that minimizes inefficiency for a given amount of revenue raised. B. design a system that raises the revenue required for the government's debt-service obligations. O C. raise the maximum possible revenue. O D. not intervene in the market economy because this only causes inefficiencies. O E. eliminate all deadweight loss.Refer to Figure 18 3. Suppose that supply is perfectly elastic and the price of this good is initially in equilibrium at P1. If an excise tax raises the price from P1 to P4, the excess burden of the tax is [:1 A. the area P1Cq10_ [:1 B. the area P1CP4_ [:1 C. the area BFC. [:1 D. the area PaAP4_ [:1 E. impossible to calculate from the given information. The diagram below shows supply and demand diagrams (S and D) for some product. The government then imposes an excise tax. The new supply curve is ST. Price ($) O A. $1 O B. $2 O C. $3 O D. $4 O E. $5The diagram below shows supply and demand diagrams (S and D) for some product. The government then imposes an excise tax. The new supply curve is ST. ST S Price ($) D . . . O A. $5 O B. $40 O C. $10 O D. $1 O E. $2