Under a defined-benefit plan from a firm, the worker will not receive a retirement
benefit
A. only if the firm goes bankrupt.
B. only if the worker leaves the firm before retirement age.
C. if the firm goes bankrupt or if the worker leaves the firm before retirement age.
D. if the firm prospers and the worker stays with the firm until retirement.
Answer:
Who should produce a public good?
A. Always government
B. Always private firms
C. Sometimes government, sometimes private firms
D.Non-profit firms
Figure 3.1 shows the MB curves for three families on the island’”L, M, and H’”and the
MC line.
Answer:
A practical problem for pollution pricing is that it requires
A. measuring prices.
B. measuring emissions.
C. knowing about substitutes.
D. knowing about technology.
Answer:
Most of federal income tax revenue comes from ____ income households.
A. high
B. middle
C. low and middle
D. labor
Answer:
The federal payroll (social insurance) tax burden as a percent of income (the effective
tax rate) is lowest for ____ income households.
A. low
B. middle
C. high
D. labor
Answer:
The burden on consumers from a 10% VAT is _ÂÂ____ the burden from a 10% RST.
A. greater than
B. less than
C. the same as
D. sometimes greater than, sometimes less than
Answer:
Economists agree that the market ____ by generating ____ pollution _____.
A. succeeds; the right amount of; because of effective property rights
B. succeeds; the right amount of; despite a failure of property rights
C. fails; too much; despite effective property rights
D. fails; too much; because of a failure of property rights
Answer:
Since the mid-1980s, each year the Social Security Trust Fund has increased its
holdings of _____.
A. cash
B. U.S. Treasury bonds
C. corporate bonds
D. corporate bonds and stocks
Answer:
If H has twice the income of L, but its MB curve is more than twice as high, then the
optimal tax is a
income tax.
A. progressive
B. proportional
C. regressive
D. comprehensive
Answer:
If a recession ____ tax revenue causing a budget ___, NUBAR _____ require fiscal
action to promptly balance the budget.
A. increased; surplus; would not
B. decreased; deficit; would
C. decreased; deficit; would not
D. decreased; surplus; would not
Answer:
Wealth equals ___.
A. assets plus liabilities
B. assets minus liabilities
C. debt plus assets
D. debt minus liabilities
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. If the government sells 120 permits, the price would end up ____.
A. $24
B. $48
C. $72
D. $96
Answer:
Assume Dove Party voters’ defense spending preference is spread out smoothly from
0% to 30% of
the budget. To win the primary election, Dove should favor, Dove should favor ____.
A. 0%
B. 5%
C. 10%
D. 15%
Answer:
Assume voters’ defense spending preference is spread out smoothly from 0% to 60% of
the budget. To win the general election, a candidate should favor ____.
A. 10%
B. 20%
C. 30%
D. 40%
Answer:
Risk was ___ by moving to a ___ workers support retirees system.
A. increased; individual
B. increased; collective
C. decreased; individual
D. decreased; collective
Answer:
In their study of optimal protection against gun violence, economists Cook and Ludwig
rely on a
survey of people’s
A. willingness to pay.
B. attitude.
C. fear.
D.aggressiveness.
Answer:
State and local spending is about ___% of GDP (compared with federal spending,
which is about ___% of GDP).
A. 20%; 10%
B. 10%; 20%
C. 20%; 20%
D. 10%; 10%
Answer:
Figure 2.1 shows the supply and demand diagram for steel. Environmental damage per
unit produced is $60.
Refer to Figure 2.1. The environmental benefit from levying a $60 per unit tax on
producers equals area ___.
A. HIJK ($4,800)
B. IJK ($2,400)
C. HIK ($2,400)
D. HIJ ($0)
Answer:
The largest ($) government program that assists only low-income people is ________.
A. Social Security
B. Medicare
C. Medicaid
D. Welfare
Answer:
With majority voting, the outcome will be what the ____ voter prefers
A. mean
B. aggressive
C. persuasive
D. median
Answer:
Raising the state share of local public school revenue enables a reduction in _____ and
may bring more state _____.
Answer:
An individual requirement is aimed at preventing _______.
Answer:
Refer to Figure 3.1. The optimal quantity of a public good is the quantity at which
______= .
Answer:
It is hard to ____ someone from benefiting from a public good like national defense; to
prevent ____, government should ___.
Answer:
Answer: