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
Consider a world with two income earners and an income tax. Individual A earns $25,000 and pays $1,000 in taxes. Individual B earns $100,000 and pays $3,000 in taxes. Which of the following best classifies the income tax system in this world? a. proportional b. progressive c. regressive d. consumption ANSWER c
Date: September 9th, 2020
Which of the following provide increased competition for public schools? a. homeschooling b. charter schools c. vouchers d. all of the above ANSWER d
Date: September 9th, 2020
The point where the sum of the external and decision-making costs is minimized is _____. a. unanimity b. Pareto efficient c. simple majority rule d. the optimal collective decision rule ANSWER d
Date: September 9th, 2020
If only current income is considered, beer taxes are _____. If lifetime income is considered, however, beer taxes are _____. a. regressive; progressive b. regressive; proportional c. progressive; regressive d. proportional; progressive ANSWER a
Date: September 9th, 2020
If a public good never becomes congested _____. a. the optimal number of users is infinite b. it is evidence that it has been under produced c. marginal costs are equal to average costs across the entire range of output d. the marginal reduction in cost per user curve is flat ANSWER a
Date: September 9th, 2020
Which of the following are reasons for the increased centralization in school financing? a. The existence of diseconomies of scale in education. b. A desire by state education agencies to decentralize control. c. A desire to equalize funding across school districts. d. Increasing positive externalities from education as globalization increases. ANSWER c
Date: September 9th, 2020
The optimal size of a club that shares a public good _____. a. gets smaller if external costs decline b. gets larger if external costs decline c. gets smaller if congestion costs decline d. gets larger if congestion costs decline ANSWER d
Date: September 9th, 2020
