Medicaid coverage is universal for all low-income individuals regardless of health. a. True b. False ANSWER b
Date: September 9th, 2020
The tax deductibility of employer-provided health insurance is a primary factor in the spread of health insurance during the latter half of the twentieth century. a. True b. False ANSWER a
Date: September 9th, 2020
Explain why tariffs are a primary revenue source for less-developed countries but not for developed countries. What will be an ideal response? ANSWER In less-developed countries, it is difficult to monitor things like income and internal transactions, but relatively easier to monitor international transactions. Since monitoring is easier on goods crossing the border, less-developed […]
Date: September 9th, 2020
Third parties do not elect large numbers of candidates in democratic countries with majority rule elections. a. True b. False ANSWER a
Date: September 9th, 2020
Employer provided health care limits the moral hazard problem to a large degree. a. True b. False ANSWER b
Date: September 9th, 2020
Assume the United States is considering either a tariff or a quota to protect motorcycles. For each of the following groups, list whether they should prefer either the tariff or the quota, or be indifferent between the two: importer of motorcycles, taxpayers, foreign producer of motorcycles. ANSWER The importer of motorcycles will prefer the […]
Date: September 9th, 2020
A good may be inferior at some income levels and normal at others. What will be an ideal response? ANSWER True. A consumer may demand more of the good at low income levels and less of the good at higher income levels. Hamburger or macaroni and cheese dinners may be examples of such goods. […]
Date: September 9th, 2020
The costs associated with the overproduction of medical services as a result of comprehensive health insurance are passed on to everyone who has health insurance in the form of higher premiums. a. True b. False ANSWER a
Date: September 9th, 2020
Compare and contrast a general retail sales tax with a value added tax. What will be an ideal response? ANSWER Both taxes have the same tax base. A general retail sales tax is easier to compute, requires less monitoring by the government, is more transparent to taxpayers, and imposes a taxpaying burden of fewer […]
Date: September 9th, 2020
Make an argument for user charges being both efficient and equitable. What information can user charges provide us that free provision can not? What will be an ideal response? ANSWER User charges can be considered equitable from the benefit principle of taxation since individuals have to pay in proportion to the benefits they receive […]
Date: September 9th, 2020
