An income tax to pay for national defense can approximate a _____ if there is a close relationship between income and _____. a. user charge; wealth b. unit tax; wealth c. user charge; consumption d. sales tax; consumption ANSWER a
Date: September 9th, 2020
One advantage of ad valorem taxes over unit taxes is that _____. a. the tax is more difficult to evade b. the tax is easier to collect c. the tax increases with inflation d. the tax automatically adjusts for inflation ANSWER d
Date: September 9th, 2020
How has the financing of elementary and secondary education changed in the United States since 1940? What is the primary reason for this trend? What will be an ideal response? ANSWER Historically, elementary and secondary education in the United States was a local enterprise. This meant school financing was traditionally financed mostly at the […]
Date: September 9th, 2020
“Americans hate broccoli.” “Because so few Americans like broccoli, average broccoli sales are lower in America then anywhere else.” Which of these two statements about the preferences of Americans is more accurate? Why? What will be an ideal response? ANSWER The second statement is more accurate because groups do not have preferences, only individuals […]
Date: September 9th, 2020
A unit tax has an advantage over an ad valorem tax in situations when _____. a. inflation is high b. it is easy to estimate the value of the good being taxed c. it is difficult to estimate the value of the good being taxed d. inflation is low ANSWER c
Date: September 9th, 2020
Provide arguments for and against education vouchers. What will be an ideal response? ANSWER Education vouchers are attractive policy options because they introduce competition into the public education system. The hope is that just like in other areas of life, choice and competition will increase the quality of goods provided and lower the cost. […]
Date: September 9th, 2020
List two economic reasons why representative democracy makes sense What will be an ideal response? ANSWER Representative democracy makes economic sense for two reasons. First, having fewer individuals involved in the decision-making process will lower the costs of making decisions. Second, there are benefits from specialization and having some individuals specialize in politics (or […]
Date: September 9th, 2020
Producers may respond to a unit tax by _____. a. increasing the value of each unit b. increasing the number of units sold c. differentiating their product line d. selling the product in bundles ANSWER a
Date: September 9th, 2020
Provide a description of the TIT FOR TAT strategy. Give a brief explanation of the importance of TIT FOR TAT strategy in Robert Axelrod’s computer tournaments and the implications of his results for public policy. What will be an ideal response? ANSWER The TIT FOR TAT Strategy is to cooperate as long as the […]
Date: September 9th, 2020
The most important difference between unit excise taxes and ad valorem excise taxes is _____. a. the unit tax will change in response to a change in the price of the taxed good, while the ad valorem tax will not b. the unit tax will not change in response to a change in the price […]
Date: September 9th, 2020
