As is shown by the example of college dropout Bill Gates, more education does generally not pay off. a. True b. False ANSWER b
Date: September 9th, 2020
If the “Marginal Congestion Cost” for a public good is constant then the optimal number of users is infinite a. True b. False ANSWER b
Date: September 9th, 2020
A tax of $5 per airplane ticket is _____. a. a unit tax b. an ad valorem tax c. an income tax d. a value-added tax ANSWER a
Date: September 9th, 2020
If a college graduate makes $10,000 more than a high school graduate, we can safely say that the education imparted in college adds $10,000 to an individual’s income. a. True b. False ANSWER b
Date: September 9th, 2020
When collective agreement on a policy is 100 percent of all voters, external costs are minimized. a. True b. False ANSWER a
Date: September 9th, 2020
In 1999, around 24 percent of college students attended private schools. a. True b. False ANSWER a
Date: September 9th, 2020
What is the ability-to-pay principle of taxation? List one strength and one weakness of the ability-to-pay principle as a guide to tax policy. What will be an ideal response? ANSWER The ability to pay principle states that individuals should pay taxes in proportion to their ability to pay. A major strength of the ability-to-pay […]
Date: September 9th, 2020
A unanimous decision rule is equivalent to market exchange in terms of efficiency. a. True b. False ANSWER b
Date: September 9th, 2020
Define horizontal and vertical equity and discuss the concepts with respect to legitimacy and usefulness. What will be an ideal response? ANSWER The principle of horizontal equity states that people with an equal ability to pay should pay the same tax while the principle of vertical equity states that people with a greater ability […]
Date: September 9th, 2020
The optimal decision rule is less than unanimity. a. True b. False ANSWER a
Date: September 9th, 2020
