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Recycling rates for aluminum, paper, and glass have been increasing in the United
States.
a. True
b. False
Annual incomes of James, Jack, and Stanley are $30,000, $50,000, and $80,000 and
their tax rates are 10%, 20%, and 30% respectively. Which tax structure is this an
example of?
a. Proportional tax
b. Progressive tax
c. Regressive tax
d. Digressive tax
In contrast to the United States, the European Union has chosen
a. greater wage inequality for lower unemployment.
b. less wage inequality and lower unemployment.
c. greater wage inequality and higher unemployment.
d. similar wage inequality but more unemployment.
e. less wage inequality for higher unemployment.
After the American Civil War, many prominent Southerners lamented the fact that the
South "overproduced" cotton and "underproduced" food. In fact, the South did import a
very large percentage of its food. Nevertheless, rather than reduce cotton production
and grow more food, Southern farmers did the opposite because
a. they were irrational and distraught over the loss of slavery.
b. the South had a comparative advantage in cotton production.
c. the North had a comparative advantage in cotton production.
d. corn was absolutely cheaper to produce in the North.
An excess burden is present when taxpayers alter their behavior on account of taxation.
a. True
b. False
Figure 8-1
Which graph in Figure 8-1 shows a typical firm's total revenue and total cost curves?
a. (a)
b. (b)
c. (c)
d. (d)
Taxes on emissions have led to
a. extraction of pollutants by firms from their liquid discharges.
b. recycling of pollutants in lieu of discharge as waste.
c. voluntary reduction in emissions to avoid the taxes.
d. all of the above.
Since rent controls have been in effect in New York City, apartments have been more
plentiful.
a. True
b. False
Which of the following is a characteristic of perfect competition?
a. large barriers to entry
b. a small number of firms
c. firms selling unique goods
d. None of the above is correct.
The United States has relatively low tariffs.
a. True
b. False
The price elasticity of demand for widgets at any particular price is determined by
a. whether widgets are luxuries or necessities.
b. how much of their budgets consumers spend on widgets.
c. whether there are any good substitutes for widgets.
d. All of the above are correct.
An economist would describe college fees as
a. an investment in human capital.
b. a transfer payment.
c. a waste of parents' money.
d. an economic loss.
Figure 7-1
In Figure 7-1, which graph best represents total physical product with diminishing
returns?
a. 1
b. 2
c. 3
d. 4
If demand for a seller's product is elastic, a price increase will decrease total revenue.
a. True
b. False
A process through which a firm seeks to obtain earnings without contributing to
production, thus wasting valuable resources, is known as
a. moral hazard.
b. rent seeking.
c. detrimental externality.
d. a defective telescopic faculty.
Because technology has automated so many functions, personal services have become
cheaper in order to compete.
a. True
b. False
Real GDP is the dollar value of all goods and services produced in an economy.
a. True
b. False
The budget line represents a consumer's preferences for a commodity.
a. True
b. False
The incidence of a tax explains what group pays the burden of a tax.
a. True
b. False
Pollution taxes are preferred to direct controls because they don't require a way of
measuring pollutants produced.
a. True
b. False
