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 […]
Third parties do not elect large numbers of candidates in democratic countries with majority rule elections. a. True b. False ANSWER a
Consider a situation where a government is deciding between two different taxes on beer. The first tax is $2.88 per case and the second is a tax of one cent per ounce placed on beer. Both are paid by the supplier. Assume both will raise the same amount of revenue this period. Pretend you are […]
The creation of Medicare and Medicaid in 1965 dealt with contemporary public health concerns. a. True b. False ANSWER b
In order to survive in political office, politicians must be steadfast in their convictions and be unwilling to change their political platforms. a. True b. False ANSWER b
If a general sales tax is enacted, we can predict with certainty that individuals will work less. a. True b. False ANSWER b
The referendum version of the median voter model allows voters to vote on a series of marginally increasing quantities of a good. a. True b. False ANSWER b
The tax base of the value added tax and a turnover tax are the same. a. True b. False ANSWER b
Skin cancer creates a public health externality. a. True b. False ANSWER b
If issues can be ranked along a one-dimensional continuum, a successful political candidate will be an individual who is best able to align her political platform to the positions of the median voter. a. True b. False ANSWER a
