Question 1

Which of the following commodities is a demerit good?

Accepted Answer

A) a lighthouse 
B) national defense 
C) alcohol 
D) public education 
A) a lighthouse 
B) national defense 
C) alcohol 
D) public education

Question 2

One distinguishing characteristic of a public good is

Accepted Answer

A) noncompetitive production. 
B) durability. 
C) non-excludability. 
D) rivalrous consumption. 
A) noncompetitive production. 
B) durability. 
C) non-excludability. 
D) rivalrous consumption.

Question 3

Explain how corporate profits are subject to "double taxation" in Canada whether a firm pays dividends to shareholders or not.

Accepted Answer

First,corporate profits are taxed by the

Question 4

A demerit good is a good or service that

Accepted Answer

A) the political process has deemed socially desirable. 
B) can be consumed by one individual without affecting the consumption of another individual. 
C) is not subject to the principle of mutual exclusivity. 
D) the political process has deemed socially undesirable. 
A) the political process has deemed socially desirable. 
B) can be consumed by one individual without affecting the consumption of another individual. 
C) is not subject to the principle of mutual exclusivity. 
D) the political process has deemed socially undesirable.

Question 5

Which of the following would be classified as a private good?

Accepted Answer

A) the highway system 
B) local fire and police services 
C) clothing 
D) clean rivers and lakes 
A) the highway system 
B) local fire and police services 
C) clothing 
D) clean rivers and lakes

Question 6

Income is taxed twice with respect to

Accepted Answer

A) corporate profits only. 
B) shareholder dividends only. 
C) both corporate profits and shareholder dividends. 
D) neither profits nor dividends since the 1986 Tax Reform Act eliminated double taxation. 
A) corporate profits only. 
B) shareholder dividends only. 
C) both corporate profits and shareholder dividends. 
D) neither profits nor dividends since the 1986 Tax Reform Act eliminated double taxation.

Question 7

Which of the following is an example of a public good?

Accepted Answer

A) medical care 
B) Canada Post 
C) national defense 
D) CN Railway 
A) medical care 
B) Canada Post 
C) national defense 
D) CN Railway

Question 8

Which of the following does NOT describe the purpose of anti-combines legislation?

Accepted Answer

A) reducing the power of monopolies 
B) restricting the formation of monopolies 
C) promoting competition within the economic system 
D) prohibiting activities that promote trade 
A) reducing the power of monopolies 
B) restricting the formation of monopolies 
C) promoting competition within the economic system 
D) prohibiting activities that promote trade

Question 9

The system of rewards and punishments decision-makers face is called the

Accepted Answer

A) incentive structure. 
B) reward structure. 
C) market structure. 
D) reaction structure. 
A) incentive structure. 
B) reward structure. 
C) market structure. 
D) reaction structure.

Question 10

Which of the following definitely would NOT be considered a merit good?

Accepted Answer

A) musical concerts 
B) museums 
C) automobiles 
D) libraries 
A) musical concerts 
B) museums 
C) automobiles 
D) libraries

Question 11

The economic functions of government differ from the political functions of government in that

Accepted Answer

A) the economic functions are carried out by provincial and municipal governments,while the political functions are carried out by the federal government. 
B) the economic functions involve things that affect the way exchange is carried out while the political functions include policies that are intended to affect income redistribution. 
C) the economic functions are carried out by the federal government,while the political functions are carried out by provincial and municipal governments. 
D) the economic functions include policies that affect income redistribution,while the political functions involve things that affect the way exchange is carried out. 
A) the economic functions are carried out by provincial and municipal governments,while the political functions are carried out by the federal government. 
B) the economic functions involve things that affect the way exchange is carried out while the political functions include policies that are intended to affect income redistribution. 
C) the economic functions are carried out by the federal government,while the political functions are carried out by provincial and municipal governments. 
D) the economic functions include policies that affect income redistribution,while the political functions involve things that affect the way exchange is carried out.

Question 12

One characteristic of a public good is that it

Accepted Answer

A) can be easily subdivided into small units. 
B) can be consumed by many individuals at the same time. 
C) always eliminates the free-rider problem. 
D) is available for consumption by only a few individuals at any particular time. 
A) can be easily subdivided into small units. 
B) can be consumed by many individuals at the same time. 
C) always eliminates the free-rider problem. 
D) is available for consumption by only a few individuals at any particular time.

Question 13

If,after the first tax bracket,your marginal tax rate is always lower than your average tax rate,the tax system is a

Accepted Answer

A) progressive tax system. 
B) proportional tax system. 
C) regressive tax system. 
D) fair tax system. 
A) progressive tax system. 
B) proportional tax system. 
C) regressive tax system. 
D) fair tax system.

Question 14

Suppose the tax rate on the first $10,000 of income is zero;10% on the next $20,000;20% on the next $20,000;30% on the next $20,000;and 40% on income over $70,000.Family C has an income of $100,000.The family's average tax rate is ________%.

Accepted Answer

The answer of Suppose the tax rate on the first...

Question 15

A family making $30,000 pays $4,500 in taxes and a family making $40,000 pays $6,000 in taxes.The tax system is

Accepted Answer

A) progressive. 
B) proportional. 
C) regressive. 
D) flat-rate. 
A) progressive. 
B) proportional. 
C) regressive. 
D) flat-rate.

Question 16

The distribution of tax burdens among various groups in society is known as

Accepted Answer

A) tax incidence. 
B) tax avoidance. 
C) capital gains. 
D) double taxation. 
A) tax incidence. 
B) tax avoidance. 
C) capital gains. 
D) double taxation.

Question 17

A merit good is a good or service that

Accepted Answer

A) the political process has deemed socially desirable. 
B) should be taxed to correct the market failure and allocative inefficiency. 
C) cannot be individually consumed. 
D) would be overproduced by the private market. 
A) the political process has deemed socially desirable. 
B) should be taxed to correct the market failure and allocative inefficiency. 
C) cannot be individually consumed. 
D) would be overproduced by the private market.

Question 18

Suppose the income tax rate schedule is 0% on the first $10,000;is 10% on the next $20,000;20% on the next $20,000;30% on the next $20,000;and 40% on any income over $70,000.Dennis,who has been earning $28,000 a year,receives a ten percent raise.How much additional tax will he have to pay?

Accepted Answer

A) $560 
B) $540 
C) $280 
D) $260 
A) $560 
B) $540 
C) $280 
D) $260

Question 19

The economic role of the legal system might best be described as

Accepted Answer

A) promoting the allocative efficiency of competitive markets. 
B) establishing "rules of the game" and acting as referee when disputes arise among market participants. 
C) identifying and producing merit goods. 
D) identifying and producing public goods. 
A) promoting the allocative efficiency of competitive markets. 
B) establishing "rules of the game" and acting as referee when disputes arise among market participants. 
C) identifying and producing merit goods. 
D) identifying and producing public goods.

Question 20

Suppose the tax rate on the first $10,000 of income is zero;10% on the next $20,000;20% on the next $20,000;30% on the next $20,000;and 40% on income over $70,000.Family A has an income of $120,000 and Family B an income of $55,000.The tax bill will be ________ for A and ________ for B.

Accepted Answer

The answer of Suppose the tax rate on the first...

Which of the following commodities is a demerit good?

One distinguishing characteristic of a public good is

Explain how corporate profits are subject to "double taxation" in Canada whether a firm pays dividends to shareholders or not.

A demerit good is a good or service that

Which of the following would be classified as a private good?

Income is taxed twice with respect to

Which of the following is an example of a public good?

Which of the following does NOT describe the purpose of anti-combines legislation?

The system of rewards and punishments decision-makers face is called the

Which of the following definitely would NOT be considered a merit good?

The economic functions of government differ from the political functions of government in that

One characteristic of a public good is that it

If,after the first tax bracket,your marginal tax rate is always lower than your average tax rate,the tax system is a

Suppose the tax rate on the first $10,000 of income is zero;10% on the next $20,000;20% on the next $20,000;30% on the next $20,000;and 40% on income over $70,000.Family C has an income of $100,000.The family's average tax rate is ________%.

A family making $30,000 pays $4,500 in taxes and a family making $40,000 pays $6,000 in taxes.The tax system is

The distribution of tax burdens among various groups in society is known as

A merit good is a good or service that

Suppose the income tax rate schedule is 0% on the first $10,000;is 10% on the next $20,000;20% on the next $20,000;30% on the next $20,000;and 40% on any income over $70,000.Dennis,who has been earning $28,000 a year,receives a ten percent raise.How much additional tax will he have to pay?

The economic role of the legal system might best be described as

Suppose the tax rate on the first $10,000 of income is zero;10% on the next $20,000;20% on the next $20,000;30% on the next $20,000;and 40% on income over $70,000.Family A has an income of $120,000 and Family B an income of $55,000.The tax bill will be for A and for B.

The Nature of Economics

Production Possibilities and Economic Systems

Demand and Supply

Introduction to Macroeconomics

Measuring the Economys Performance

Modelling Real Gdp and the Price Level in the Long Run

Economic Growth and Development

Modelling Real Gdp and the Price Level in the Short Run

Consumption, investment, and the Multiplier

Fiscal Policy and the Public Debt

Money and the Banking System

Money Creation and Deposit Insurance

The Bank of Canada and Monetary Policy

Issues in Stabilization Policy

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters

Exam 10: The Public Sector

Which of the following commodities is a demerit good?

One distinguishing characteristic of a public good is

Explain how corporate profits are subject to "double taxation" in Canada whether a firm pays dividends to shareholders or not.

A demerit good is a good or service that

Which of the following would be classified as a private good?

Income is taxed twice with respect to

Which of the following is an example of a public good?

Which of the following does NOT describe the purpose of anti-combines legislation?

The system of rewards and punishments decision-makers face is called the

Which of the following definitely would NOT be considered a merit good?

The economic functions of government differ from the political functions of government in that

One characteristic of a public good is that it

If,after the first tax bracket,your marginal tax rate is always lower than your average tax rate,the tax system is a

Suppose the tax rate on the first $10,000 of income is zero;10% on the next $20,000;20% on the next $20,000;30% on the next $20,000;and 40% on income over $70,000.Family C has an income of $100,000.The family's average tax rate is ________%.

A family making $30,000 pays $4,500 in taxes and a family making $40,000 pays $6,000 in taxes.The tax system is

The distribution of tax burdens among various groups in society is known as

A merit good is a good or service that

Suppose the income tax rate schedule is 0% on the first $10,000;is 10% on the next $20,000;20% on the next $20,000;30% on the next $20,000;and 40% on any income over $70,000.Dennis,who has been earning $28,000 a year,receives a ten percent raise.How much additional tax will he have to pay?

The economic role of the legal system might best be described as

Suppose the tax rate on the first $10,000 of income is zero;10% on the next $20,000;20% on the next $20,000;30% on the next $20,000;and 40% on income over $70,000.Family A has an income of $120,000 and Family B an income of $55,000.The tax bill will be ________ for A and ________ for B.

The Nature of Economics

Production Possibilities and Economic Systems

Demand and Supply

Introduction to Macroeconomics

Measuring the Economys Performance

Modelling Real Gdp and the Price Level in the Long Run

Economic Growth and Development

Modelling Real Gdp and the Price Level in the Short Run

Consumption, investment, and the Multiplier

Fiscal Policy and the Public Debt

Money and the Banking System

Money Creation and Deposit Insurance

The Bank of Canada and Monetary Policy

Issues in Stabilization Policy

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters

Suppose the tax rate on the first $10,000 of income is zero;10% on the next $20,000;20% on the next $20,000;30% on the next $20,000;and 40% on income over $70,000.Family A has an income of $120,000 and Family B an income of $55,000.The tax bill will be for A and for B.