Exam 15: Public Finance and Public Choice

Evidence suggests that, taken collectively, federal taxes in the U.S.economy are:

Taxes paid on the wages received from a job would fall into the category of:

Use the following to answer question(s): Correcting for Market Failure: A Public Good -(Exhibit: Correcting for Market Failure: A Public Good) A private market produces R units of output of a public good.If the government intervenes to provide the efficient level of a public good, the net gain will be:

Use the following to answer question(s): Market Failure -(Exhibit: Market Failure) If the market produces quantity F, then:

Transfer payments represent government purchases.

An example of a tax based on benefits received is the _______ tax.

As a percentage of GDP, government purchases in the United States have increased significantly in the past four decades, but government expenditures have been relatively constant.

It may be rational to be ignorant about an issue if the costs of being educated about it outweigh the benefits.