Question 1

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

The answer of A family making $30,000 pays $4,500 in...

Question 2

By definition,a merit good

Accepted Answer

A) is a good that is deemed socially desirable. 
B) does not affect society's general welfare. 
C) is always a public good. 
D) is a good available only to upper-income groups. 
A) is a good that is deemed socially desirable. 
B) does not affect society's general welfare. 
C) is always a public good. 
D) is a good available only to upper-income groups.

Question 3

Suppose you purchased 100 shares of stock in 2000 for $20 a share,and the price now is $30 a share.Your capital gain,should you sell the stock,is $________.

Accepted Answer

The answer of Suppose you purchased 100 shares of stock...

Question 4

Suppose the income tax rate is zero 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 all income above $70,000.Family A has income of $100,000 while Family B has income of $40,000.The marginal tax rate on the two families are

Accepted Answer

A) 40% on A and 10% on B. 
B) 30% on A and 20% on B. 
C) 40% on A and 20% on B. 
D) 30% on A and 30% on B. 
A) 40% on A and 10% on B. 
B) 30% on A and 20% on B. 
C) 40% on A and 20% on B. 
D) 30% on A and 30% on B.

Question 5

Using appropriate diagrams,explain how a tax on consumers could be used not to collect revenue but to to correct for a negative externality in the production of a product.

Accepted Answer

First,the spillover cost imposed on othe

Question 6

In the absence of government intervention

Accepted Answer

A) free-rider problems are less likely to occur. 
B) market failure is less likely to occur. 
C) public goods are likely to be over-provided. 
D) public goods are likely to be under-provided. 
A) free-rider problems are less likely to occur. 
B) market failure is less likely to occur. 
C) public goods are likely to be over-provided. 
D) public goods are likely to be under-provided.

Question 7

A capital gain

Accepted Answer

A) is the negative difference between the purchase price and the sale price of an asset. 
B) is the positive difference between the purchase price and the sale price of an asset. 
C) is the increase in income that is not subject to personal income taxation. 
D) is the income received from stocks and bonds. 
A) is the negative difference between the purchase price and the sale price of an asset. 
B) is the positive difference between the purchase price and the sale price of an asset. 
C) is the increase in income that is not subject to personal income taxation. 
D) is the income received from stocks and bonds.

Question 8

Which of the following is an example of the free-rider problem?

Accepted Answer

A) a neighbour refuses to help pay for a street light that is intended to help reduce crime 
B) a law enforcement officer receives a uniform from the police department 
C) a student refuses to buy a college catalog 
D) a fast food employee is provided food at work 
A) a neighbour refuses to help pay for a street light that is intended to help reduce crime 
B) a law enforcement officer receives a uniform from the police department 
C) a student refuses to buy a college catalog 
D) a fast food employee is provided food at work

Question 9

Private goods are goods or services

Accepted Answer

A) that can only be consumed by one individual at a time. 
B) that violate the principle of rival consumption. 
C) to which the exclusion principle applies. 
D) for which no public market exists. 
A) that can only be consumed by one individual at a time. 
B) that violate the principle of rival consumption. 
C) to which the exclusion principle applies. 
D) for which no public market exists.

Question 10

Which one of the following is NOT a characteristic of public goods?

Accepted Answer

A) They are indivisible. 
B) They can be used by increasing numbers of people at no additional cost. 
C) They are subject to the principle of rival consumption. 
D) It is difficult to charge people on the basis of how much they use. 
A) They are indivisible. 
B) They can be used by increasing numbers of people at no additional cost. 
C) They are subject to the principle of rival consumption. 
D) It is difficult to charge people on the basis of how much they use.

Question 11

The marginal tax rate and the average tax rate are the same under a

Accepted Answer

A) regressive income tax system. 
B) progressive income tax system. 
C) proportional income tax system. 
D) consumption tax system. 
A) regressive income tax system. 
B) progressive income tax system. 
C) proportional income tax system. 
D) consumption tax system.

Question 12

Define rational ignorance and explain how it is relevant for consumers,bureaucrats and businesses.

Accepted Answer

Information is costly and often (in fore

Question 13

Assuming wealthier people are more likely to experience capital gains than poor people,a tax system that applies a lower rate to this type of income is likely to be

Accepted Answer

A) progressive. 
B) proportional. 
C) regressive. 
D) unfair to the poor. 
A) progressive. 
B) proportional. 
C) regressive. 
D) unfair to the poor.

Question 14

A national sales tax with a constant percentage tax rate would be

Accepted Answer

A) progressive. 
B) progressive at low incomes and proportional at high incomes. 
C) proportional. 
D) regressive. 
A) progressive. 
B) progressive at low incomes and proportional at high incomes. 
C) proportional. 
D) regressive.

Question 15

Assume that a family making $20,000 pays $1,500 in taxes while a family making $40,000 pays $3,500 in taxes.Over this income range,the tax rate system is

Accepted Answer

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

Question 16

The opportunity cost of providing a public good to an additional individual is

Accepted Answer

A) impossible to determine. 
B) high,because of the exclusion principle. 
C) zero. 
D) infinite. 
A) impossible to determine. 
B) high,because of the exclusion principle. 
C) zero. 
D) infinite.

Question 17

The choice between a proportional,progressive or regressive tax will typically be

Accepted Answer

A) independent of concerns for fairness. 
B) based on efficiency concerns. 
C) based on the desire to foster economic growth. 
D) based on normative concerns. 
A) independent of concerns for fairness. 
B) based on efficiency concerns. 
C) based on the desire to foster economic growth. 
D) based on normative concerns.

Question 18

Which of the following is NOT an economic function of government?

Accepted Answer

A) hiring the hard-to-employ 
B) providing public goods 
C) promoting competition 
D) promoting price stability 
A) hiring the hard-to-employ 
B) providing public goods 
C) promoting competition 
D) promoting price stability

Question 19

How do public goods differ from a merit goods?

Accepted Answer

Public goods have two characteristics:th

Question 20

The Canadian Goods and Services Tax is

Accepted Answer

A) a progressive tax because all workers pay the tax. 
B) a regressive tax because it taxes consumption at the same rate for both rich and poor. 
C) a progressive tax because higher income individuals pay more tax. 
D) a proportional tax because everyone is charged the same percentage tax rate. 
A) a progressive tax because all workers pay the tax. 
B) a regressive tax because it taxes consumption at the same rate for both rich and poor. 
C) a progressive tax because higher income individuals pay more tax. 
D) a proportional tax because everyone is charged the same percentage tax rate.

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 ________.

By definition,a merit good

Suppose you purchased 100 shares of stock in 2000 for $20 a share,and the price now is $30 a share.Your capital gain,should you sell the stock,is $________.

Suppose the income tax rate is zero 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 all income above $70,000.Family A has income of $100,000 while Family B has income of $40,000.The marginal tax rate on the two families are

Using appropriate diagrams,explain how a tax on consumers could be used not to collect revenue but to to correct for a negative externality in the production of a product.

In the absence of government intervention

A capital gain

Which of the following is an example of the free-rider problem?

Private goods are goods or services

Which one of the following is NOT a characteristic of public goods?

The marginal tax rate and the average tax rate are the same under a

Define rational ignorance and explain how it is relevant for consumers,bureaucrats and businesses.

Assuming wealthier people are more likely to experience capital gains than poor people,a tax system that applies a lower rate to this type of income is likely to be

A national sales tax with a constant percentage tax rate would be

Assume that a family making $20,000 pays $1,500 in taxes while a family making $40,000 pays $3,500 in taxes.Over this income range,the tax rate system is

The opportunity cost of providing a public good to an additional individual is

The choice between a proportional,progressive or regressive tax will typically be

Which of the following is NOT an economic function of government?

How do public goods differ from a merit goods?

The Canadian Goods and Services Tax is

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

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Exam 10: The Public Sector

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 ________.

By definition,a merit good

Suppose you purchased 100 shares of stock in 2000 for $20 a share,and the price now is $30 a share.Your capital gain,should you sell the stock,is $________.

Suppose the income tax rate is zero 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 all income above $70,000.Family A has income of $100,000 while Family B has income of $40,000.The marginal tax rate on the two families are

Using appropriate diagrams,explain how a tax on consumers could be used not to collect revenue but to to correct for a negative externality in the production of a product.

In the absence of government intervention

A capital gain

Which of the following is an example of the free-rider problem?

Private goods are goods or services

Which one of the following is NOT a characteristic of public goods?

The marginal tax rate and the average tax rate are the same under a

Define rational ignorance and explain how it is relevant for consumers,bureaucrats and businesses.

Assuming wealthier people are more likely to experience capital gains than poor people,a tax system that applies a lower rate to this type of income is likely to be

A national sales tax with a constant percentage tax rate would be

Assume that a family making $20,000 pays $1,500 in taxes while a family making $40,000 pays $3,500 in taxes.Over this income range,the tax rate system is

The opportunity cost of providing a public good to an additional individual is

The choice between a proportional,progressive or regressive tax will typically be

Which of the following is NOT an economic function of government?

How do public goods differ from a merit goods?

The Canadian Goods and Services Tax is

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