It is possible that a voucher program could erode the public nature of public schools, effectively turning all schools into private schools. a. True b. False ANSWER b
Date: September 9th, 2020
What is a sumptuary tax? Give an explanation for how cigarette taxes could be justified as a sumptuary tax. Give an explanation for why cigarette taxation might not, in actuality, achieve the goal of sumptuary taxation. What will be an ideal response? ANSWER A sumptuary tax is a tax designed to discourage the consumption […]
Date: September 9th, 2020
Define the benefit principle. List two real world taxes that have the features of a tax based on the benefit principle. Why can’t the benefit principle be the sole principle of taxation? What will be an ideal response? ANSWER The benefit principle states that the people who benefit from the government’s expenditures should be […]
Date: September 9th, 2020
About 1.7 percent of elementary and secondary students were educated at home in 1999. a. True b. False ANSWER a
Date: September 9th, 2020
The above figure shows the isoquants for producing steel. Constant returns to scale are A) present when producing less than 10,000 tons. B) present when producing between 10,000 and 20,000 tons. C) present when producing more than 20,000 tons. D) never present. ANSWER B
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
Individuals within a group have preferences. a. True b. False ANSWER a
Date: September 9th, 2020
