A VAT is _____ with respect to _____.
A. regressive; consumption
B. regressive; income
C. progressive; consumption
D. progressive; income
Answer:
With no policy, each firm emits 120 tons of carbon. As H reduces its emissions from
120 to 0, its marginal abatement cost (MAC) rises from $0 to $480; as L reduces its
emissions from 120 to 0, its MAC rises from $0 to $120. The MD of a ton of carbon is
$96. The tax per ton is T.
Refer to Figure 2.2. Instead, suppose H cuts back 120 and L cuts back 0; the total cost
would be _______.
A. $7,200
B. $11,520
C. $14,400
D. $28,800
Answer:
Two reasons for assigning a role to state government are _____.
A. externalities and scale economies
B. externalities and tax capitalization
C. scale economies and tax capitalization
D. scale economies and tax collusion
Answer:
In cost-benefit analysis, economists try to put a dollar value on
A. all benefits but not all costs.
B. all costs but not all benefits.
C. all benefits and all costs.
D. not all benefits and not all costs.
Answer:
In 2040, Medicare, Medicaid, and Social Security will constitute ___ of GDP.
A. 10%
B. 12%
C. 14%
D. 16%
Answer:
This historical system was risky
A. only if you had no children.
B. only if your children were selfish.
C. only if your children were poor.
D. if you had no children, or they were selfish, or they were poor.
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 9.1. In the middle block, person C’s tax must be _____.
A. $0
B. $10,000
C. $15,000
D. $30,000
Answer:
Under NUBAR each year Congress must enact a ____ budget for the ____ fiscal year
that ______ estimate would be balanced if ____ year’s unemployment rate is normal.
A. planned; coming; technicians; next
B. current; current; technicians; this
C. planned; coming; legislators; next
D. current; current; legislators; this
Answer:
Since the mid-1980s, each year payroll taxes have been ___ benefits.
A. less than
B. exactly equal to
C. approximately equal to
D. greater than
Answer:
Switching a payroll tax from workers to employers would ___ the burden on workers.
A. increase
B. decrease
C. hold constant
D. halve
Answer:
The ratio of benefits received to local taxes paid is highest for _____.
A. an elderly couple
B. a family with four children between ages 7 and 17.
C. a middle-age couple without children
D. a family with four children between ages 1 and 4
Answer:
Most countries have a value-added tax except _____.
A. the United States
B. France
C. Germany
D. Britain
Answer:
Under the U.S. estate tax, the estate must exceed ____ to owe any tax.
A. $20,000,000
B. $2,000,000
C. $200,000
D. $20,000
Answer:
In contrast to the EITC, a family’s NIT would equal a percentage of the gap between
______ and ______.
A. the family’s wage income; a target wage income
B. the family’s income; a target income
C. the worker’s wage; a target wage
D. the worker’s wage income; a target income
Answer:
If a project would save 1,000 lives, this adds ___ to the total benefits of the project.
A. $8 trillion
B. $8 billion
C. $8 million
D. $800,000
Answer:
According to the Actuary of the Social Security Administration, from about 2030 to
2040 Social Security will have to ____ to pay scheduled benefits.
A. buy corporate bonds
B. buy Treasury bonds
C. sell its corporate bonds
D. sell its Treasury bonds
Answer:
Under a defined-contribution plan, the worker will not receive a retirement benefit if
A. the worker switches jobs.
B. the worker’s firm goes bankrupt.
C. the worker invests in stocks that collapse or bonds that default.
D. the government stops levying payroll taxes.
Answer:
Analysts Wallsten and Kosec estimated that as of mid-2006 the cost of the Iraq
intervention had been ___ billion or ___ per person.
A. $45; $150
B. $150; $500
C. $400; $1,300
D. $1,900; $6,000
Answer:
An accurate cost estimate in 2002 of intervening in Iraq ___ have been sufficient to
decide whether to intervene because cost _____.
A. would; is a decisive factor
B. would; is crucial according to economic analysis
C. would not; should be irrelevant to military decisions
D. would not; should be weighed against possible benefit
Answer:
A collective workers support retirees system can implement _____.
A. redistribution
B. capital accumulation
C. investment
D. technological innovation
Answer:
If H has the twice the income of L and its MB curve is twice as high, then the optimal
tax is a _____ income tax.
Answer:
If a $20 tax per ton of carbon is imposed, then the ____ will be $20.
Answer:
Banks are generally more reluctant to lend to college students than to home buyers
because of the _____ problem.
Answer:
Part B of Medicare for doctor fees is funded ___ by general revenue and ___ by
premiums from retirees.
Answer:
With a corporate and individual income tax, dividends are taxed ___ and interest is
taxed ___.
Answer:
Under the subtraction method, the firm calculates its VAT by what formula?
Answer:
The most effective grant for increasing activity X is ____.
Answer: