A public school system ______.
A. has selective admissions and tuition
B. has selective admissions and no tuition
C. has no admissions testing and has tuition
D. has no admissions testing and no tuition
Answer:
Another way to reduce the ____ of a RST or a VAT is by sending each household a
____.
A. regressivity; a basket of luxury goods
B. regressivity; cash rebate
C. progressivity; a basket of luxury goods
D. progressivity; cash rebate
Answer:
A collective workers support retirees system is implemented by ____ using ____.
A. government; voluntary contributions
B. government; taxes
C. unions; voluntary contributions
D. unions; taxes
Answer:
As of 2008, federal debt is about ___ of GDP.
A. 25%
B. 35%
C. 50%
D. 100%
Answer:
To measure the benefit of improving the safety of a highway, economists ask consumers
what they would be willing to pay to
A. avoid their own highway death.
B. avoid the highway death of loved ones.
C. reduce the chance of highway death from P in 1,000 to p in 1,000.
D. increase the chance of surviving a highway accident from P in 1,000 to p in 1,000.
Answer:
Inspections of bridges should occur until the ____ no longer exceeds the ____.
A. total benefit; total cost
B. total cost; total benefit
C. marginal benefit; marginal cost
D. marginal cost; marginal benefit
Answer:
Laffer’s hypothesis is that the current tax rate t is ___ than tm so raising t will ___
revenue.
A. greater; increase
B. greater; decrease
C. smaller; increase
D. smaller; decrease
Answer:
Under an each generation self-sufficient system, ______.
A. r* = mpj
B. r* = mpk
C. r* = mpl
D. r* = mpm
Answer:
Producing the optimal quantity of a good is called ____ efficiency.
A. distributive
B. redistributive
C. productive
D. allocative
Answer:
Under a RST, investment goods ___ taxed. Under a VAT, investment goods ___ taxed.
A. are; are
B. are; are not
C. are not; are
D. are not; are not
Answer:
The tax-wedge short-cut involves moving ___ from the D/S intersection until the ___
gap equals the tax.
A. right; horizontal
B. right; vertical
C. left; horizontal
D. left; vertical
Answer:
Self-interested affluent suburbanites should support state taxes to fund grants to cities
for ______.
A. schools
B. police protection
C. parks
D. day care
Answer:
Using diagrams, explain why: (A) the distribution of the tax burden depends on relative
elasticities; (B) the distribution of the tax burden doesn’t depend on who writes the
check.
Answer:
If the supply curve of X is steep and the demand curve is flat, then a $2 tax on the
consumers of X reduces price ___ than $1 and most of the burden of the tax falls on
___.
A. more; producers
B. more; consumers
C. less; producers
D. less; consumers
Answer:
For many retirees, the ratio of home value to income is relatively ___ so they would
prefer that their town use _____ tax.
A. low; a property
B. low; an income
C. high; a property
D. high; an income
Answer:
A mistake sometimes made in cost-benefit analysis is counting job ____ as a ___.
A. destruction; cost
B. destruction; benefit
C. creation; cost
D. creation; benefit
Answer:
Two possible problems with having local governments compete are tax ____ and tax
____.
A. exporting; competition
B. capitalization; exporting
C. competition; capitalization
D. collusion; exporting
Answer:
In theory it is ____ for government to borrow to finance capital expenditures because
future taxpayers _______.
A. unfair; will not benefit and should therefore bear no burden
B. unfair; will benefit and should therefore bear the burden
C. fair; will not benefit and should therefore bear no burden
D. fair; will benefit and should therefore bear the burden
Answer:
Advocates say that income-related patient cost-sharing for Medicare would be
A. efficient and equitable.
B. efficient.
C. equitable.
D. efficient, equitable, and popular with retirees.
Answer:
The EITC causes _____.
A. a marriage bonus
B. a marriage penalty
C. a marriage bonus for some people and a marriage penalty for other people
D. neither a marriage bonus nor a marriage penalty
Answer:
The federal deficit has averaged about ___ of GDP over the past forty years.
A. 2%
B. 4%
C. 6%
D. 8%
Answer:
The ___ tax raises about 35% of federal revenue.
Answer:
Without a corporate income tax, _____ would escape tax.
Answer:
In 2006 economists Stiglitz and Bilmes estimated that the cost of the Iraq intervention
would end up exceeding ___ billion or ___ per person.
Answer:
Under a household consumption tax, the household would sum its ____ and subtract its
_______.
Answer:
Revenue from the tax equals ___.
Answer:
To measure the benefit of improving the safety of a highway, economists ask consumers
what they would be willing to pay to
Answer:
The replacement rate is roughly __% for a low-income worker, __% for an average
worker, and __% for a high-income worker.
Answer:
The consumption tax rate is set so that it raises the same total revenue from the two
persons as the 15% income tax ($30,000).
Refer to Table 9.3. In the bottom block, person C’s tax must be ____.
Answer:
The fiscal imbalance of a program (like Social Security or Medicare) equals ______.
Answer:
Under a public school system there is unequal quality of schooling due to what?
Answer: