Public schools in affluent suburbs feel pressure to perform well because parents _____.
A. can afford private schools
B. value education more than material possessions
C. have connections
D. have political power
Answer:
Under a public school system there is unequal quality of schooling due to _____.
A. government monopoly
B. admissions testing
C. a residential separation process
D. tuition
Answer:
Economists agree that the solution is to restore the market by restoring the missing
ingredient: _____.
A. ownership of the resource and a price for its use
B. capitalism
C. an environmental ethic
D. the profit motive
Answer:
The revenue-rate curve for a wage income tax shows revenue ____ when the rate is 0%,
revenue ____ when the rate is 100%, and revenue ____ when the rate equals tm.
A. minimum; maximum; in between
B. zero; maximum; in between
C. minimum; zero; minimum
D. zero; zero; maximum
Answer:
With demand horizontal, the ratio of the efficiency loss L to tax revenue R equals ___.
A. (1/2)t2ε
B. (1/2)tε
C. t2ε
D. tε
Answer:
Economists find it useful for cost-benefit analysis to have a dollar estimate for
A. a VSL’”a value of a statistical life.
B. a VSL’”a value of a saved life.
C. a BSL’”a benchmark of a statistical life.
D. a BSL’”a benchmark of a saved life.
Answer:
Switching from an income tax to a consumption tax does not eliminate the efficiency
loss in the market for _____.
A. labor
B. saving
C. affluent saving
D. labor and the market for saving
Answer:
Public schools in poor city neighborhoods feel less pressure to perform well because
_____.
A. teachers don’t respect parents
B. teachers have low expectations for children
C. parents can’t afford private schools
D. parents value material possessions more than education
Answer:
On average, about what percentage of the revenue spent by local public schools comes
from the state?
A. 10%
B. 30%
C. 50%
D. 70%
Answer:
The ___ tax raises about 10% of federal revenue.
A. personal income
B. corporate income
C. payroll
D. sales
Answer:
Stern used a ___ rate than Nordhaus and this resulted in a ___ present value than
Nordhaus computed.
A. larger; larger
B. larger; smaller
C. smaller; smaller
D. smaller; larger
Answer:
Under a collective workers support retirees system, ______.
A. r* = gLgW
B. r* = gL + gW + gLgW
C. r* = gL/gW
D. r* = gLgW ‘“ gL – gW
Answer:
Suppose a commuter would save an hour a day by using a new highway. Then one
measure of the benefit of the highway is the increased ___ as measured by the __.
A. output; wage
B. output; interest rate
C. family time; wage
D. family time; interest rate
Answer:
Welfare is motivated by the _____ sentiment to help families to the degree that they
____.
A. conservative; need help
B. conservative; work
C. liberal; need help
D. liberal; work
Answer:
If a tax on capital income reduces saving and investment, then it ___ the wage by _____
the productivity of labor and shifting the demand curve of labor ___.
A. decreases; decreasing; down
B. increases; increasing; up
C. decreases; increasing; down
D. increases; decreasing; up
Answer:
One reason why economists Stern (British) and Nordhaus (American) reached different
conclusions from a cost-benefit analysis of cutting carbon emissions is that they used a
different ___ rate to compute the present value of future __.
A. discount; benefits
B. discount; costs
C. inflation; benefits
D. inflation; costs
Answer:
If cost-shares are set equal and MB curves differ, voters will prefer
A. the same quantity.
B. different quantities. C. the optimal quantity.
D. a non-optimal quantity.
Answer:
A problem for a pollution tax is that
A. it will raise revenue.
B. it won’t eliminate pollution.
C. it may not achieve the pollution target in the short run.
D. it won’t achieve the pollution target in the long run.
Answer:
The Welfare Reform Act of 1996 converted the federal ____ grant to ____ grant.
A. fixed block; a fixed matching
B. fixed block; an open-ended matching
C. open-ended matching; a fixed block
D. open-ended matching; an open-ended block
Answer:
Without a corporate income tax, ____ would escape tax.
A. dividends
B. interest
C. retained profits
D. realized capital gains
Answer:
The percentages in the benefit formula set by Congress are
A. 90%, 80%, 70%.
B. 90%, 32%, 15%.
C. 30%, 60%, 90%.
D. 45%, 90%, 45%.
Answer:
The replacement rate is roughly __% for a low-income worker, __% for an average
worker, and __% for a high-income worker.
A. 20%; 40%; 60%
B. 20%; 60%; 40%
C. 40%; 60%; 20%
D. 60%; 40%; 20%
Answer:
Under a comprehensive income tax, unrealized capital gains ______ taxed and only
_____ capital gains would be taxed.
A. would be; nominal
B. would be; real
C. would not be; nominal
D. would not be; real
Answer:
If H has twice the income of L, but its MB curve is less than twice as high, then the
optimal tax is a
____income tax.
A. progressive
B. proportional
C. regressive
D. comprehensive
Answer:
To a person, the monetary benefit of undertaking higher education equals the ____
value of the ______.
A. present; salary she will earn over the rest of her life with her degree
B. present; increase in salary she will earn over the rest of her life due to her degree
C. future; salary she will earn over the rest of her life with her degree
D. future; increase in salary she will earn over the rest of her life due to her degree
Answer:
See your figure from question 1. The net loss to society from the production of units
121 through 200 is $______.
Answer:
Under a private school system, a variable voucher plan would ____ the quality gap
between high and low-income children.
Answer:
The distribution of the tax burden between suppliers and demanders depends on ___.
Answer:
A household’s comprehensive income equals its consumption plus its _____.
Answer:
The tax-wedge short-cut involves moving ___ from the D/S intersection until the ____
gap equals the tax.
Answer:
If there is a positive _____, health insurance may generate a quantity of medical care
that is ____.
Answer:
Draw a diagram with a shaded triangle and use it to explain why health insurance
causes an efficiency loss if there is no externality, but may not cause any efficiency loss
if there is a positive externality for medical care.
Answer:
A recent rough estimate of the value of a statistical life (VSL) is ___.
Answer: