Exam 16: Efficiency Vsequality: The Big Trade-Off

Use the following to answer questions : Figure 16-1 -What type of government activity would move the economy from E to F in Figure 16-1?

Regulation in the United States began to be imposed as it became clear that laissez-faire policies were being undermined by:

An example of a regressive tax is:

Which of the following would be considered indirect taxes?

The largest item in local government budgets in the aggregate is:

An example of a government transfer payment is

The Invisible Hand has several limitations.

Broadly defined, public choice theory is the branch of economics that studies:

The corporate income tax is a classic example of benefit taxation.

State and local taxes in the United States tend to be:

Governments are playing an increasing role in representing their countries internationally.This is because:

Laissez-faire policies lapsed in response, at least in part, to exaggerated business cycle swings in the aggregate economy.

Statistical studies show that the incidence of our income-tax structure is regressive at low levels of income.

The efficiency concern of government is motivated primarily as an attempt to help the market answer the for whom question of allocation.

Income redistribution is usually accomplished through taxation and spending policies.

Many people disagree about the degree of equity built into the current tax system.This is because of the problem of evaluating:

Regulatory activity in the United States:

Some redistribution of income is accomplished by the way in which the government allocates the burden of the taxes it levies.

Early capitalism was prone to financial panics and bouts of inflation and depression.

The efficiency function of government is motivated primarily by a concern that the what and how questions are being incorrectly answered by the marketplace.