Equity issues in taxation are inherently positive in nature. a. True b. False ANSWER b
Date: September 9th, 2020
Education vouchers have the advantage that they retain ______ but still allow _____. a. government financing; parents to choose b. government production; considerable government control c. government production; parents to choose d. government financing; considerable government control ANSWER a
Date: September 9th, 2020
Using the principle of vertical equity, it is easy to argue in favor of _____. a. sumptuary taxation b. progressive taxation c. regressive taxation d. none of the above ANSWER d
Date: September 9th, 2020
If a good is congestible, then _____. a. the optimal sharing group is a the national level b. the optimal club size is where marginal reduction in cost per user is minimized c. some congestion is optimal d. marginal costs are constant for any possible output level ANSWER c
Date: September 9th, 2020
Taxes that are designed to discourage consumption of the taxed good are called _____. a. regressive taxes b. head taxes c. sumptuary taxes d. sales taxes ANSWER c
Date: September 9th, 2020
Which of the following are criticisms of voucher programs? a. They do not allow government to exercise enough control over education finance. b. Exclusionary admission standards under a voucher program would be unjust. c. Vouchers might be used at sub-standard schools. d. all of the above e. b and c ANSWER e
Date: September 9th, 2020
The optimal sharing group _____. a. increases as the cost of the public good increases b. declines as the cost of the public good increases c. declines as the cost of the public good declines d. increases as the cost of the public good increases ANSWER a
Date: September 9th, 2020
Sumptuary taxes are often justified on the grounds that _____. a. bad activities should be discouraged b. the rich should pay more c. the poor should pay less d. merit goods need encouragement ANSWER a
Date: September 9th, 2020
From an economic point of view, _____ makes a lot of sense because it takes advantage of the gains produced by specialization. a. bicameral legislatures b. representative democracy c. proportionality in the House of Representatives d. bureaucracy ANSWER b
Date: September 9th, 2020
A _____ of representative democracy is it _____. a. downside; increases decision-making costs b. benefit; increases decision-making costs c. downside; reduces decision-making costs d. benefit; reduces decision-making costs ANSWER d
Date: September 9th, 2020
