A tax on the producers of a good shifts
A. up the demand curve.
B. down the demand curve.
C. up the supply curve.
D. down the supply curve.
Answer:
Refer to Table 11.1. The district’s price for the low-income district is ___.
A. 33%
B. 25%
C. 20%
D. 10%
Answer:
If the supply curve of X is steep and the demand curve is flat, then a $2 tax on the
producers of X raises 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:
Switching from an income tax to a consumption tax eliminates the efficiency loss in the
market for ___.
A. labor
B. saving
C. high-skilled labor
D. labor and the market for saving
Answer:
A public good has two properties: _____ and .
A. excludability; rivalry
B. excludability; nonrivalry
C. nonexcludability; rivalry
D. nonexcludability; nonrivalry
Answer:
The initial cost estimate by Bush’s economic adviser (Lawrence Lindsey) of an
intervention in Iraq was ___ billion or ___ per person.
A. $10; $30
B. $45; $150
C. $150; $500
D. $300; $1,000
Answer:
Under a credit-invoice method, the firm calculates its VAT by what formula?
A. T= t(S-P)
B. T= tS-tP
C. T= t(S+P)
D. T= tS+tP
Answer:
Because of the residential separation process, school districts differ in their fiscal ___–
their _____ per pupil.
A. responsibility; property tax base
B. capacity; property tax base
C. responsibility; obligation
D. capacity; obligation
Answer:
Under both a RST and a VAT, imported consumer goods ___ taxed, and exported
consumer goods ___ taxed.
A. are; are
B. are; are not
C. are not; are
D. are not; are not
Answer:
Assume there is no externality. A subsidy for a good results in
A. too little of the good.
B. too much of the good.
C. the right quantity of the good.
D. the right price for the good.
Answer:
Assume Hawk Party voters’ defense spending preference is spread out smoothly from
30% to 60% of the budget. To win the primary election, Hawk should favor ___.
A. 60%
B. 55%
C. 50%
D. 45%
Answer:
Suppose person H has an expected medical cost of $6,400 and person L, $1,600. In a
competitive insurance market, an insurer that charges $4,000 to both will attract ____ to
enroll.
A. both
B. neither
C. only L
D. only H
Answer:
Without government insurance for retirees, the typical individual retiree would be
charged a premium equal to ___.
Answer:
The public choice school of economists contends that legislators will spend ___ than
what is best for the citizenry unless ____ by ____.
Answer:
Line #5 in the tax return is ___.
Answer:
See your figure from question 6. When 67% insurance is introduced, the price paid out
of pocket by patients ___ from ___ to ___.
Answer:
Name two things private schools use that public schools don’t.
Answer:
The two most important taxes for states are the _____.
Answer: