A. All these answers can be supported by the benefits principle of taxation
B. Progressive income taxes used to pay for national defense
C. Petrol taxes used to pay for roads
D. property taxes used to pay for policies and the court system
Related Mcqs:
- The property tax wealth tax inheritance tax and income taxes such as persona and corporate taxes are ?
A. indirect taxes
B. direct taxes
C. inelastic
D. value-added tax - Except for taxes to offset ______ taxes are ______?
A. imperfect competition popular
B. externalities , distortionary
C. inequality , a first best option
D. poor health, unnecessary - The ability-to-pay principle of taxation suggests that if a tax system is to be vertically equitable it should be ?
A. efficient
B. progressive
C. regressive
D. proportional - Unemployment benefits may increase the unemployment rate because unemployment benefits ?
A. encourage people to quit their jobs
B. reduce the cost of job search
C. enable people to quit searching for work
D. reduce the benefits of additional job searching - For given government spending and taxation the government budget deficit will grow in _________ and decline in __________?
A. booms, booms
B. recession, recession
C. booms, recessions
D. recessions, booms - A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work, save and invest. These economists are?
A. Supply-side economics
B. neo-Keynesian economists
C. rational-expectations economists.
D. new classical economists. - A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work save and invest these economists are ?
A. supply side economists
B. neo-Keynesian economists
C. rational -expectations economists
D. New classical economists - Which of the following is true with regard to a tax on labor income? Taxes on labor income tend to encourage ?
A. the unscrupulous to enter the underground economy
B. the elderly to retire early.
C. all the things described in these answers.
D. second earners to stay home.
E. workers to work fewer hours - Which of the following statements regarding taxes is correct ?
A. Most economists believe that in the short run the greatest impact of a change in taxes is on aggregate supply, not aggregate demand
B. An increase in taxes shifts the aggregate demand curve to the right
C. A decrease in taxes shifts the aggregate supply curve to the left
D. A permanent change in taxes has a greater effect on aggregate demand than a temporary change in taxes. - Suppose an industry emits a negative externality such a pollution and the possible methods to internalize the externality are command-and-control policies, pigovian taxes, and tradable pollution permits. If economists were to rank these methods for internalizing a negative externality based on efficiency ease of implementation and the incentive for the industry to further reduce pollution in the future, they would probably rank them in the following order (from most favored to least favored) ?
A. Pigouvian taxes, command-and-control policies, tradable pollution permits.
B. tradable pollution permits, Pigouvian taxes, command-and-control policies
C. tradable pollution permits command-and-control policies, Pigovian taxes.
D. command-and-control policies, tradable pollution permits, Pigovian taxes.
E. They would all rank equally high because the same result can be obtained from any one of the policies
