Special interests influence tax policy at all levels of government, but ______. a. they are most effective at the local level b. they are most effective at the state level c. they are most effective at the federal level d. they are equally effective at all levels of government ANSWER c
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
In spite of the stated goal of discouraging behavior, if a sumptuary tax is applied on _____, behavior will not change very much. a. a good with elastic demand b. a good with inelastic demand c. income d. wealth ANSWER b
Date: September 9th, 2020
An increase in congestion costs associated with a public good provided through clubs will _____. a. lead to new clubs being formed b. lead to a reduction in the optimal size of the club c. be unrelated to congestion costs d. lead to fewer clubs being formed ANSWER b
Date: September 9th, 2020
In 1999, what percentage of K-12 students attended private schools? a. Around 6 percent b. Around 9 percent c. Around 11 percent d. Around 14 percent ANSWER c
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
