1. The largest portion of federal government revenues comes from ___
a. The individual income tax
b. Excise taxes
c. Social insurance payroll taxes
d. Corporate income taxes
2. Individuals with more experience tend to earn more than individuals with less experiences. This is because
a. Experience is a compensating differential
b. Experience on the job increases an individual’s human capital
c. It is only fair that a more-experienced worker be paid more than a less-experienced worker
d. The government requires that more-experienced workers be paid more than less-experienced workers
3. The official poverty line in the United States is set ___
a. Equal to one-half the average income in the United States
b. At three times the cost of the Department of Argiculture’s minimum food budget
c. At three times the cost of the Department of Housing’s minimum allowance
d. At the amount necessary to allow an individual to buy the same market basket of goods that the average urban wage earner can afford
4. Vertical equity holds that
a. Those with equal ability to pay should bear equal tax burdens
b. Those who benefit the most from government services should bear the higher tax burden
c. Those with greater ability to pay should pay more
d. Those with equal ability to pay should bear unequal tax burdens
5. A theory of fairness that holds that taxpayers should contribute to the government in proportion to the benefits they receive from public expenditures is the
a. Ability-to-pay principle
b. Equity principle
c. Benefits-received principle
d. Equality-for-all principle
6. The amount that a consumer pays to consume an additional unit of a particular good is the marginal
a. Private cost
b. Damage cost
c. Positive cost
d. Social cost
7. Tax shifting ___
a. Is the way in which a tax is structured
b. Is the ultimate distribution of a tax’s burden
c. Occurs when taxes cause prices to increase, but wages to fall
d. Occurs when taxed agents can alter their behavior and do something to avoid paying a tax
8. The bottom fifth of families in the income distribution receive most of their income from ___
a. Labor
b. Property
c. Transfer
d. Gambling
9. Evidence suggests that in the last several decades, technology has played a role in driving inequality. Thus, ____ may be key to reducing inequality in the future
a. Education
b. Savings
c. Research and development
d. Investment
10. A Gini coefficient of zero means that ___
a. The income is equally distributed
b. One person has all the income and everyone else has nothing
c. All the income is received by the top 20% of families
d. The income is split equally between the top 20% and the rest of the distribution
a. The individual income tax
b. Excise taxes
c. Social insurance payroll taxes
d. Corporate income taxes
2. Individuals with more experience tend to earn more than individuals with less experiences. This is because
a. Experience is a compensating differential
b. Experience on the job increases an individual’s human capital
c. It is only fair that a more-experienced worker be paid more than a less-experienced worker
d. The government requires that more-experienced workers be paid more than less-experienced workers
3. The official poverty line in the United States is set ___
a. Equal to one-half the average income in the United States
b. At three times the cost of the Department of Argiculture’s minimum food budget
c. At three times the cost of the Department of Housing’s minimum allowance
d. At the amount necessary to allow an individual to buy the same market basket of goods that the average urban wage earner can afford
4. Vertical equity holds that
a. Those with equal ability to pay should bear equal tax burdens
b. Those who benefit the most from government services should bear the higher tax burden
c. Those with greater ability to pay should pay more
d. Those with equal ability to pay should bear unequal tax burdens
5. A theory of fairness that holds that taxpayers should contribute to the government in proportion to the benefits they receive from public expenditures is the
a. Ability-to-pay principle
b. Equity principle
c. Benefits-received principle
d. Equality-for-all principle
6. The amount that a consumer pays to consume an additional unit of a particular good is the marginal
a. Private cost
b. Damage cost
c. Positive cost
d. Social cost
7. Tax shifting ___
a. Is the way in which a tax is structured
b. Is the ultimate distribution of a tax’s burden
c. Occurs when taxes cause prices to increase, but wages to fall
d. Occurs when taxed agents can alter their behavior and do something to avoid paying a tax
8. The bottom fifth of families in the income distribution receive most of their income from ___
a. Labor
b. Property
c. Transfer
d. Gambling
9. Evidence suggests that in the last several decades, technology has played a role in driving inequality. Thus, ____ may be key to reducing inequality in the future
a. Education
b. Savings
c. Research and development
d. Investment
10. A Gini coefficient of zero means that ___
a. The income is equally distributed
b. One person has all the income and everyone else has nothing
c. All the income is received by the top 20% of families
d. The income is split equally between the top 20% and the rest of the distribution
Comments
Post a Comment