Consider a world with three income earners. Individual A earns $20,000 and pays $1,000 in taxes. Individual B earns $50,000 and pays $5,000 in taxes. Individual C earns $100,000 and pays $2,000 in taxes. Which of the following best classifies the income tax system in this world? a. proportional b. progressive c. regressive d. none […]
An argument against increasing centralization in elementary and secondary education is _____. a. that it is anti-egalitarian b. that there are fewer administrators to oversee extracurricular programs c. that it results in less direct accountability to students and parents d. that socialization is a problem in large school districts ANSWER c
Since 1940 the percentage of elementary and secondary educational expenditures financed by local governments _____. a. declined by around 10 percentage points b. increased by around 10 percentage points c. increased by around 5 percentage points d. declined by around 15 percentage points ANSWER d
In the context of collective decision-making, external costs are _____. a. the costs imposed on everyone in the group b. the costs imposed on those outside the group c. the costs imposed on those who voted for the decision d. the costs imposed on those harmed by the decision ANSWER d
Assuming that we can properly measure ability to pay, how do we use the principle of vertical equity to determine how much someone with greater ability to pay should pay in taxes? a. By integrating it with the principle of horizontal equity. b. Through reference to the benefit principle. c. By looking at elasticities of […]
Consumers do not prefer gifts-in-kind to cash gifts. What will be an ideal response? ANSWER True. It is possible the consumer would buy the same gift with cash and therefore be just as well off. If the consumer bought something other than the gift, that means that this something else is preferred to the […]
Which of the following is not a common rationale for government involvement in education? a. Public education produces a positive inframarginal externality. b. Public provisions of education makes students into better citizens. c. Public financing of education is necessary on equity grounds. d. all of the above ANSWER d
With a unanimity decision-making rule, external costs are _____. a. zero b. indeterminate c. high d. minimized ANSWER a
A tax that that takes the same percentage of a taxpayer’s income regardless no matter what their total income is called a _____. a. proportional tax b. progressive tax c. head tax d. regressive tax ANSWER a
In 1952, there were _____ school districts in the United States. a. fewer than 15,000 b. around 30,000 c. around 45,000 d. more than 60,000 ANSWER d
