A tax that takes a smaller percentage of an individual’s income as their income rises is called a _____. a. proportional tax b. progressive tax c. sumptuary tax d. regressive tax ANSWER d
Date: September 9th, 2020
Economic status tends to be passed on from one generation to the next _____. a. regardless of the monetary wealth that is transmitted from parents to children b. because of the monetary wealth that is transmitted from parents to children c. in nearly all societies d. a and c ANSWER d
Date: September 9th, 2020
The percentage of elementary and secondary educational expenditures financed by the federal government _____ between 1940 and 2000. a. increased from 5 to 10 percent b. increased from 2 to 7 percent c. stayed relatively constant around 5 percent d. increased from 3 to 13 percent ANSWER b
Date: September 9th, 2020
As conflicts between principles of taxation are normative in nature, _____. a. agreement is easily reached b. disagreement cannot easily be resolved c. the benefit principle should be the proper default d. the Pareto criteria should be used instead ANSWER b
Date: September 9th, 2020
The optimal collective decision rule _____. a. will be 100 percent if collective decision-making costs are high b. will be simple majority rule if external costs are extremely large c. has declining external costs as voting rule moves from unanimity d. is likely to be less than majority rule ANSWER c
Date: September 9th, 2020
The equity argument for government financing of education _____. a. is dependent upon the socialization argument b. does not imply government financing c. does not imply government production d. is dependent upon externalities being inframarginal ANSWER c
Date: September 9th, 2020
Joe’s indifference map for lobster and soda is shown in the above figure along with his budget line. Will Joe choose point a? Explain your answer in terms both of MRS and the level of utility. What will be an ideal response? ANSWER Joe will not choose point a. Since the slope of his […]
Date: September 9th, 2020
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
Date: September 9th, 2020
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
Date: September 9th, 2020
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 […]
Date: September 9th, 2020
