 |
| 1 | |
Which of the following federal taxes is most progressive? |
| | A) | Corporate income tax |
| | B) | Personal income tax |
| | C) | Social security tax |
| | D) | Medicare tax |
|
|
|
| 2 | |
All else equal, the more elastic the demand and supply of the good being taxed, the greater the efficiency loss of an excise tax. |
| | A) | True |
| | B) | False |
|
|
|
| 3 | |
The alleged inefficiency of public bureaucracies arises primarily because: |
| | A) | the voting paradox leads to too little public output |
| | B) | special interests work to assure the passage of projects whose costs exceed their benefits |
| | C) | public sector workers have less training than their private sector counterparts |
| | D) | competitive pressures of the market are largely absent |
|
|
|
| 4 | |
An excise tax imposed on sellers is more likely to be shifted onto consumers: |
| | A) | the more inelastic the supply |
| | B) | the more inelastic the demand |
| | C) | the more elastic the demand |
| | D) | the higher the price of the product |
|
|
|
| 5 | |
Consider the following observations regarding the markets for products A, B, C, and D:
A: demand and supply are both relatively inelastic
B: demand and supply are both relatively elastic
C: demand is elastic and supply is inelastic
D: demand is inelastic and supply is elastic
In which market will the largest portion of an excise tax be borne by sellers? |
| | A) | A |
| | B) | B |
| | C) | C |
| | D) | D |
|
|
|
| 6 | |
The city council composed of six people is considering three different park expansion proposals. Two council members prefer a bigger park to any smaller park; two others prefer a smaller park to anything bigger. The final two prefer a moderate-size park to either extreme. The final outcome of the vote will: |
| | A) | depend on which pair of alternatives is voted on first |
| | B) | be the largest park |
| | C) | be the smallest park |
| | D) | be the moderate size park |
|
|
|
| 7 | |
A public choice economist would most likely study: |
| | A) | the impact of discrimination in labor markets |
| | B) | the effect of logrolling on congressional decisions |
| | C) | the effect of changes in the money supply on interest rates |
| | D) | the relationship between technological change and economic growth |
|
|
|
| 8 | |
A cost-benefit analysis of five possible plans for renovating a city's opera house is as follows (all figures are in millions of dollars):
 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/1113273090/384260/quiz29b_8.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (7.0K)</a>]]>
Based on the cost-benefit analysis, the city should: |
| | A) | not renovate the opera house |
| | B) | proceed with plan B |
| | C) | proceed with plan C |
| | D) | proceed with plan D |
|
|
|
| 9 | |
The two primary philosophies regarding the apportionment of the tax burden are: |
| | A) | willingness to pay and benefits received |
| | B) | inelastic supply and inelastic demand |
| | C) | majority rule and the median voter |
| | D) | benefits received and ability to pay |
|
|
|
| 10 | |
The overall U.S. federal tax system is moderately regressive. |
| | A) | True |
| | B) | False |
|
|
.