Local revenue comes mainly from the ___ tax.
A. personal income
B. corporate income
C. property
D. sales
Answer:
Selling versus giving permits: firms want ___; taxpayers should want ___.
A. selling; giving
B. giving; selling
C. selling; selling
D. giving; giving
Answer:
Public schools in poor neighborhoods would feel more pressure to perform well if
_____.
A. teachers respected parents
B. teachers had high expectations for children
C. parents valued education more than material possessions
D. parents had a refundable tax credit for private school tuition
Answer:
Under government reinsurance, government would reimburse ___ for X% of the
amount by which the patient’s medical bill ____.
A. private insurers; is less than a high threshold
B. patients; is less than a high threshold
C. private insurers; is greater than a high threshold
D. patients; is greater than a high threshold
Answer:
With many families, the ____should assign each family a ____ that makes the family
prefer the social optimum.
A. government; tax price
B.median voter; tax price
C. government; voluntary cost-share
D.median voter; voluntary cost-share
Answer:
Historically, when people became too old to work, their ___ supported them.
A. children
B. government
C. neighbors
D. employer
Answer:
When government borrows, the _____ curve for loanable funds shifts ____ and the
interest rate ____.
A. supply; right; falls
B. supply; left; rises
C. demand; right; falls
D. demand; right; rises
Answer:
If a city government levies high taxes on affluent residents, then
A. affluent residents may move to the suburbs.
B. affluent and middle-income residents may move to the suburbs.
C. affluent and low-income residents may move to the suburbs.
D. affluent, middle-income, and low-income residents may move to the suburbs.
Answer:
The federal tax system as a whole is ____.
A. progressive
B. proportional
C. regressive
D. super-regressive
Answer:
One way to provide more low-income assistance would be to expand the number of
A. refundable tax deductions.
B. refundable tax credits.
C. nonrefundable tax deductions.
D. nonrefundable tax credits.
Answer:
If the supply curve is horizontal, e is the elasticity of demand, and t is the tax rate, the
efficiency loss equals ___.
A. (1/2)tePQ
B. (1/2)t2ePQ
C. tePQ
D. t2ePQ
Answer:
Adverse selection means that instead of a ____ sample, a ____ sample is likely to
enroll.
A. biased; random
B. random; biased
C. large; small
D. small; large
Answer:
The discussion of rationing considered the hypothetical example of a medical procedure
that would give ____ an extra year of life at a ___ cost.
A. a child; moderate
B. a child; huge
C. a very old person; moderate
D. a very old person; huge
Answer:
When patients have 100% insurance, they order more medical care. Insurers call this
___ and economists call it ___.
A. price responsiveness; moral hazard
B. moral hazard; price responsiveness
C. insurance abuse; utility maximization
D. insurance abuse; profit maximization
Answer:
For a family with one child, the EITC phase in rate is ___.
A. 14%
B. 24%
C. 34%
D. 44%
Answer:
Refer to Table 11.1. The district’s price cut for the low-income district is ___.
A. 67%
B. 75%
C. 80%
D. 90%
Answer:
In a competitive insurance market, each person will be charged a premium equal to her
A. average medical cost.
B. marginal medical cost.
C. expected medical cost.
D. unexpected medical cost.
Answer:
According to the traditional approach, a property tax shifts ____ the ____ curve for
homes and thereby ____ the price of homes.
A. down; supply; lowers
B. down; demand; lowers
C. up; supply; raises
D. up; demand; raises
Answer:
Some people can’t get health insurance because of their
A. attitude.
B. optimism.
C. laziness.
D. costly chronic illness.
Answer:
Suppose workers channel a portion of their payroll tax to their own investment
accounts. If the Treasury borrows from the public and gives the revenue to the Social
Security Trust Fund then
A. no one is burdened.
B. current retirees are burdened.
C. future taxpayers are burdened.
D. future bondholders are burdened.
Answer:
One way to provide more low-income assistance would be to expand the number of
_____.
Answer:
On average about _____% of the revenue spent by local public schools comes from the
state.
Answer:
In 2005, President Bush proposed the introduction of individual accounts. Explain his
proposal and how it relates to the statement “breaking out is hard to do.”
Answer:
Suppose workers channel a portion of their payroll tax to their own investment
accounts. If the Treasury borrows from the public and gives the revenue to the Social
Security Trust Fund, then ____ burdened.
Answer:
If a citizen doesn’t pay for national defense, the citizen ___ get it. Hence, national
defense is a ____ good.
Answer: