The household income tax could be converted into a household consumption tax by
letting households deduct ____.
A. saving
B. charitable contributions
C. mortgage interest
D. state and local property and income taxes
Answer:
In affluent towns, who benefits most from using property taxes rather than tuition to
finance public schools?
A. retirees
B. parents with four school-age children
C. parents with one school-age child
D. teachers
Answer:
Projects that benefit only local communities should generally be funded by ____.
A. local money
B. state money
C. federal money
D.foreign money
Answer:
The optimal scale of a project occurs where the ___ equals the __.
A. total social benefit; total social cost
B. total social benefit; marginal social cost
C. marginal social benefit; total social cost
D. marginal social benefit; marginal social cost
Answer:
Some citizens would not contribute voluntarily to finance a ______ good because they
are _____.
A. private; free-riders
B. public; free-riders
C. private; altruistic
D.public; altruistic
Answer:
Suppose consumers are asked what they would be willing to pay to use a new highway.
What is this method of measuring the highway’s benefit called?
A. contingent valuation
B. revealed preference
C. actual market behavior
D. increased output
Answer:
A subsidy to the producers of a good shifts
A. up the demand curve.
B. down the demand curve.
C. up the supply curve.
D. down the supply curve.
Answer:
Under a self-sufficient system, the economy accumulates ____ capital and produces
____ output than under a workers support retirees system.
A. less; less
B. less; more
C. more; more
D. more; less
Answer:
Gifts or inheritances received by a household ___ included in the recipient’s
comprehensive income ____ included in the recipient’s U.S. taxable income.
A. are; and are
B. are; but are not
C. are not; but are
D. are not; and are not
Answer:
Local projects funded by federal or state money are sometimes called ___ projects
A. pork-barrel
B. beef-barrel
C. fish-barrel
D.cracker-barrel
Answer:
A major problem with the Kyoto global warming treaty is that
A. the U.S. is not participating (though China is).
B. China is not participating (though the U.S. is).
C. neither the U.S. nor China is participating.
D. both the U.S. and China are participating.
Answer:
What deduction under the U.S. income tax is similar to a household consumption tax?
A. The deduction for saving in an individual retirement account
B. The deduction for mortgage interest payments
C. The deduction for medical expenses above 7.5% of AGI
D. The deduction for state and local income and property taxes
Answer:
For the average person, getting health insurance through an employer is cheaper than
buying it individually
A. because sales cost is lower and there is a tax advantage.
B. only because sales cost is lower.
C. only because there is a tax advantage.
D. because the average person has above-average medical costs.
Answer:
Majority voting will result in the socially optimal quantity if the ____ voter is assigned
a ____ equal to its ____ at the optimal quantity.
A. median; cost-share; MB
B. mean; cost-share; MB
C. median; MB; cost-share
D. mean; MB; cost-share
Answer:
To achieve unanimous choice of the optimal quantity of a public good, each voter’s
____ should be set equal to the voter’s ____ at the optimal quantity.
A. MB; MC
B. MB; cost-share
C. cost-share; MB
D. ΣMB; cost-share
Answer:
The Welfare Reform Act of 1996 imposed two time limits on receiving benefits:
A. 12 consecutive months, 24 months over a lifetime.
B. 24 consecutive months, 60 months over a lifetime.
C. 60 consecutive months, 124 months over a lifetime.
D. 24 consecutive months, 144 months over a lifetime.
Answer:
The problem that results from the residential separation process can be addressed by
______.
A. state funding of private schools
B. state funding of public schools
C. local funding of private schools
D. local funding of public schools
Answer:
One way to reduce the ____ of a RST or a VAT is by exempting ____.
A. regressivity; luxuries
B. regressivity; necessities
C. progressivity; luxuries
D. progressivity; necessities
Answer:
In a society where household incomes differ significantly,
A. the separation process operates but not the Tiebout process.
B. the Tiebout process operates but not the separation process.
C. both the separation process and the Tiebout process operate.
D. neither the separation process nor the Tiebout process operate.
Answer:
A tax on producers of X shifts the ___ curve ___.
A. supply; up
B. supply; down
C. demand; up
D. demand; down
Answer:
“I’ll vote for your highest priority if you vote for mine.” This is called .
Answer:
The burden on consumers from a 10% VAT is ___ from a 10% RST.
Answer:
The state government gives a local government $10,000 to spend on activity X. What is
this is an example of?
Answer:
Discuss the reason for, and the design of, a balanced budget rule.
Answer:
A retail sales tax mainly burdens consumers rather than retailers as long as demand is
___ relative to supply.
Answer:
If b* is debt as a percentage of GDP in the long run, f is the deficit as a percentage of
GDP, and g is the growth rate of nominal GDP, then b* = ___.
Answer:
In this EITC phase-down range, the individual faces a ________ of ____%.
Answer:
In their study of optimal protection against gun violence, economists Cook and Ludwig
rely on a
survey of people’s .
Answer:
If three people vote pair-wise between thin, intermediate, and thick, then there will be a
clear winner if everyone’s preferences have a .
Answer:
Draw a diagram with two parts (top and bottom) to show the projections of the Chief
Actuary of the Social Security Administration for 2010, 2020, 2030, and 2040. The top
shows benefits and taxes; the bottom shows U.S. bonds in the SS Trust Fund. Explain
the diagram. On your diagram, show a solution to the 2040 problem.
Answer: