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ECO 450 Entire Course + Final Exam For more classes visit www.snaptutorial.com

ECO 450 Week 1 DQ 1 The Basics ECO 450 Week 1 DQ 2 Government Expenditures ECO 450 Week 2 DQ 1 Markets and Efficiency ECO 450 Week 2 DQ 2 Externalities ECO 450 Week 2 Quiz ECO 450 Week 3 DQ 1 Public versus Private Goods ECO 450 Week 3 DQ 2 The Political Process ECO 450 Week 3 Quiz ECO 450 Week 4 Assignment 1 Social Security Insolvency ECO 450 Week 4 DQ 1 Cost-Benefit Analysis ECO 450 Week 4 DQ 2 Government Assistance Programs ECO 450 Week 4 Quiz ECO 450 Week 5 DQ 1 Retirement and the Social Security System ECO 450 Week 5 DQ 2 The U.S. Health Care Dilemma ECO 450 Week 5 Mid Term ECO 450 Week 6 DQ 1 Taxation and Government Finance


ECO 450 Week 6 DQ 2 Evaluating Alternative Methods to Finance Government ECO 450 Week 6 Quiz ECO 450 Week 7 DQ 1 Taxation and Income ECO 450 Week 7 DQ 2 The National Debt ECO 450 Week 7 Quiz ECO 450 Week 8 Assignment 2 The Value-Added Tax Is It Good for the United States ECO 450 Week 8 DQ 1 The U.S. Tax System ECO 450 Week 8 DQ 2 Personal Income Tax ECO 450 Week 8 Quiz ECO 450 Week 9 DQ 1 Corporate Income Tax ECO 450 Week 9 DQ 2 Taxation on Consumption and Sales ECO 450 Week 9 Quiz ECO 450 Week 10 DQ 1 Wealth and Taxation ECO 450 Week 10 DQ 2 Government Finance ECO 450 Week 10 Quiz ECO 450 Week 11 DQ 1 Government Policies on Health Care and Taxation ECO 450 Week 11 DQ 2 Public Finance and You ECO 450 Week 11 Final Exam Part 1 ECO 450 Week 11 Final Exam Part 2


--------------------------------------------------ECO 450 Week 2 Quiz For more classes visit www.snaptutorial.com

Question 1 About 80 percent of federal receipts are accounted for by: Answer • Question 2 Transfer payments by the federal government in the United States account for about: Answer • Question 3 Following the circular flow of a mixed economy, firms receive a flow of dollars from and send goods and services to: Answer • Question 4 In 2008, which country listed below has the highest percentage of government spending relative to GDP? Answer • Question 5 Government purchases for consumption and investment:


Answer • Question 6 Government goods and services are usually: Answer • Question 7 Following the circular flow of a mixed economy, which entity or entities distribute resources? Answer • Question 8 State and local government expenditure in the United States accounts for about: Answer • Question 9 A mixed economy is one in which: Answer • Question 10 Total annual expenditures by federal, state, and local governments in the United States in the 1990s accounted for roughly: Answer • Question 11 The real cost of government goods and services is: Answer


• Question 12 If the economy is currently operating on a point on the production possibility curve for government goods and services versus private goods and services, Answer • Question 13 Taxes: Answer • Question 14 The old-age dependency ratio is: Answer • Question 15 Federal government expenditures in the United States account for about: Answer --------------------------------------------------ECO 450 Week 3 Quiz For more classes visit www.snaptutorial.com

Question 1 Which of the following is a normative statement?


Question 2 If a government desires to increase production beyond the current competitively determined efficient level, the government should: Question 3 If the efficient output of a good is produced each week, then the: Question 4 Normative economics: Question 5 Diamonds are sold by a monopoly firm that maximizes profits. Then it follows that: Question 6 The marginal social cost of bread exceeds the marginal social benefit at the current weekly output. Therefore, Question 7 An efficient level of output means: Question 8 Positive economics is: Question 9 Suppose the efficient output currently prevails in the market for ice cream. A tax on ice cream conÂŹsumption will: Question 10 The extra benefit on one more unit of a good or service is its: Question 11


The total social benefit of automobiles equals the total social cost at current annual output. Then it follows that: Question 12 Positive economics: Question 13 Normative economics is: Question 14 A move from an inefficient resource allocation to an efficient one: Question 15 If efficiency has been attained, Question 16 Assuming a product can be manufactured competitively without any externalities at an efficient quantity of 1,000 units and an efficient price of $100.00 per unit, what efficient quantity-price combination would be consistent with a negative externality? Question 17 Electric power is produced by an unregulated monopoly in a certain region. The monopolistic electric power company’s production of electricity results in $10 per kilowatt hour of pollution damage to parties other than the buyers of electricity in the region. To achieve efficiency, Question 18


If the marginal costs of reducing emissions varies among regions, then regulations requiring all regions in a nation to reduce emissions by the same amount will achieve: Question 19 The effect of a positive externality is similar to: Question 20 The marginal external cost associated with paper production is constant at $10 per ton per year. The competitive market equilibrium for paper production is currently 10 million tons per year. A corrective tax on paper production: Question 21 The current competitive market price of fish is $3 per pound. A chemical producer emits effluent into a lake used by a commercial fishing firm. Each ton of chemical output causes a 20-pound reduction in the annual catch of the fishing firm. Assuming that transactions costs are zero and the chemical firm has the legal right to dump effluent into the lake, Question 22 The effect of a negative externality is similar to: Question 23 The marginal external cost associated with air pollution increases with the annual output of a pollutÂŹing industry. At the current competitive equilibrium level of output per year, the marginal external cost is $10 per unit of output. To achieve efficiency, Question 24


If a positive externality prevails in the market for smoke detectors, then when the market is in equilibrium, Question 25 The competitive market equilibrium price of sanitation services in a small town with no government-supplied sanitation services is $2 per trash pickup. There is a $1 marginal external benefit associated with each trash pickup. The elasticity of supply of trash pickups is infinite in the long run, implying a horizontal supply curve. To achieve the efficient output of sanitation services, Question 26 Regulations require that emissions of carbon monoxide be limited to 1,000 tons per 100 square miles for all regions of the nation. If the marginal external cost of the emissions varies among regions in the nation, then the regulations will: Question 27 According to the Coase theorem, externalities can be internalized when transactions costs are zero through: Question 28 Assuming a product can be manufactured competitively without any externalities at an efficient quantity of 500 units and an efficient price of $150.00 per unit, what efficient quantity-price net subsidy combination would be consistent with a corrective subsidy for a positive externality? Question 29


A negative externality results from the sale of firewood in competitive markets. Then it follows that: Question 30 Which of the following is true about command-and-control regulation that allows businesses to emit pollutants up to a certain point and bans emissions after that limit is reached? --------------------------------------------------ECO 450 Week 4 Assignment 1 Social Security Insolvency For more classes visit www.snaptutorial.com

ECO 450 Week 4 Assignment 1 Social Security Insolvency --------------------------------------------------ECO 450 Week 4 Quiz For more classes visit www.snaptutorial.com

Question 1 Which of the following is a good example of a congestible public good? Question 2 A baseball field is:


Question 3 A means of creating a price-excludable public good is: Question 4 An example of an undesirable public good (or public “bad”) is: Question 6 The marginal cost of making a given quantity of a congestible public good available to more con¬sumers is: Question 7 Public transportation is: Question 8 The efficient output of a pure public good is achieved at the point at which: Question 9 The demand curve for a pure public good is: Question 10 The nonrival property of pure public goods implies that the: Question 11 The principle of nonexclusion for pure public goods means that the benefits of the good: Question 12 The free-rider problem: Question 13


Cable TV programming is an example of a: Question 14 The marginal cost of providing a certain quantity of a pure public good to an additional consumer after it is provided to any one consumer is: Question 15 The monthly rental rate for a satellite dish antenna is $200. The maximum marginal benefit that any resident of a condominium community will obtain per month from the antenna is $50. There are 100 residents in the community, none of whom values the antenna at less than $25 per month. Assuming that the antenna is a pure public good for residents of the community, Question 16 If a person has multiple-peaked preferences for a pure public good, Question 17 A community currently hires 10 security guards per week to patrol their neighborhood. Each secuÂŹrity guard costs $300 per week. Assuming that the tax-sharing arrangement agreed to results in each of 300 voters paying the same tax share, each voter pays a weekly tax bill of: Question 18 If all voters have single-peaked preferences for a pure public good, then the political equilibrium under majority rule: Question 19


A voter’s most-preferred political outcome will be that for which the: Question 20 A proposal to build new roads in a small town is up for a vote. Voter B estimates that his marginal benefit of roads at the proposed new level would be $80 per year. This voter will vote against the proposal: Question 21 A small community currently taxes residents to provide monthly community concerts. Voter A currently pays a tax per concert equal to $50 per month. This voter receives a marginal benefit of $75 at the current political equilibrium number of concerts per month. Voter A: Question 22 Implicit logrolling results when: Question 23 Arrow’s impossibility theorem states: Question 24 Which of the following collective choice rules is likely to incur the highest political transactions costs? Question 25 If the marginal social benefit of one more unit of a good is 10 and the marginal social cost of one more unit of a good is 11, then: Question 26


Which of the following collective choice rules is likely to have the lowest political externalities? Question 27 The demand curve for a pure public good is: Question 28 Voter A will normally vote in favor of one security guard per week because his marginal benefit is $125 and his tax share is $100 per week. Voter A receives zero marginal benefit from one concert a week and would vote against it. Voter B receives $125 marginal benefit from one concert per week but no marginal benefit from one security guard. One concert per week also will fail to gain a majority when put to the vote. Assuming that both Voter A and Voter B will pay $100 per week in tax for each concert and each security guard, Question 29 The plurality rule is: Question 30 A public choice is: --------------------------------------------------ECO 450 Week 5 Mid Term Exam For more classes visit www.snaptutorial.com


This midterm exam consist of 35 multiple choice questions and covers the material in Chapters 1 through 7. There are five questions from each Chapter. Question 1: If the economy is operating at full employment and using resources efficiently, then an increase in spending for homeland security this year will: Question 2 Following the circular flow of a mixed economy, firms receive a flow of dollars from and send goods and services to: Question 3 In 2008, which country listed below has the highest percentage of government spending relative to GDP? Question 4 Federal government expenditures in the United States account for about: Question 5 A mixed economy is one in which: Question 6 The extra benefit on one more unit of a good or service is its: Question 7 Normative economics is: Question 8


Diamonds are sold by a monopoly firm that maximizes profits. Then it follows that: Question 9 Positive economics: Question 10 If the efficient output of a good is produced each week, then the Question 11 The current competitive market price of fish is $3 per pound. A chemical producer emits effluent into a lake used by a commercial fishing firm. Each ton of chemical output causes a 20-pound reduction in the annual catch of the fishing firm. Assuming that transactions costs are zero and the chemical firm has the legal right to dump effluent into the lake, Question 12 Assuming a product can be manufactured competitively without any externalities at an efficient quantity of 500 units and an efficient price of $150.00 per unit, what efficient quantity-price net subsidy combination would be consistent with a corrective subsidy for a positive externality? Question 13 If a positive externality prevails in the market for smoke detectors, then when the market is in equilibrium, Question 14 The competitive market equilibrium price of sanitation services in a small town with no government-supplied sanitation services is


$2 per trash pickup. There is a $1 marginal external benefit associated with each trash pickup. The elasticity of supply of trash pickups is infinite in the long run, implying a horizontal supply curve. To achieve the efficient output of sanitation services, Question 15 According to the Coase theorem, externalities can be internalized when transactions costs are zero through: Question 16 Education is: Question 17 Cable TV programming is an example of a: Question 18 The marginal cost of making a given quantity of a congestible public good available to more conÂŹsumers is: Question 19 Public transportation is: Question 20 The principle of nonexclusion for pure public goods means that the benefits of the good: Question 21 The plurality rule is: Question 22 A public choice is:


Question 23 A community currently hires 10 security guards per week to patrol their neighborhood. Each secu¬rity guard costs $300 per week. Assuming that the tax-sharing arrangement agreed to results in each of 300 voters paying the same tax share, each voter pays a weekly tax bill of: Question 24 Which of the following collective choice rules is likely to incur the highest political transactions costs? Question 25 If the marginal social benefit of one more unit of a good is 10 and the marginal social cost of one more unit of a good is 11, then: Question 26 Program budgeting is a way to: Question 27 A government agency has a new hydroelectric project that will take 15 years to build before it pro¬vides any benefits. The net present value of the project will be highest under which of the following discount rates? Question 28 The process of taking a previous period’s budget and making minor changes to produce the current year’s budget is called: Question 29 If the social rate of discount falls, then the efficient amount of government capital spending will:


Question 30 The mission of a government agency is: Question 31 A welfare recipient receives a cash transfer of $100 per week. This grant is not reduced if the recipient earns less than $20 per week. However, after the recipient earns more than $20 per week, the grant is reduced by 66 cents for each dollar of earnings. The cash transfer will be reduced to zero if the recipient earns: Question 32 Government transfers to the poor in the United States: Question 33 Temporary Assistance to Needy Families (TANF) replaced: Question 34 In the United Stated, which of the following years had the highest poverty rate? Question 35 The Supplemental Nutrition Assistance (formerly called food stamps): --------------------------------------------------ECO 450 Week 6 Quiz For more classes visit www.snaptutorial.com


Question 1 2 out of 2 points The Social Security retirement system: Question 2 A retiree subject to the earnings test under Social Security: Question 3 A worker earns $2,000 per month before taxes. He pays $140 per month payroll tax on those wages. In addition, the income taxes on those wages are $360 per month. On retirement, the worker receives a Social Security pension of $750 per month. Which of the following statements is true? Question 4 Unless legislation is introduced to change the normal retirement age, people born in 1960 or later will be able to retire with full Social Security benefits at age: Question 5 2 out of 2 points Which of the following can decrease tax rates necessary to pay pensions for a pay-as-you-go pension system? Question 6 2 out of 2 points A nation has 40 million current retirees and a work force of 100 million. Which of the following is true? Question 7


2 out of 2 points The gross replacement rate: Question 8 A pay-as-you-go social security retirement system is: Question 9 2 out of 2 points Social Security tax rates can be reduced if: Question 10 2 out of 2 points The asset-substitution effect of the Social Security retirement system leads all workers to: Question 11 2 out of 2 points Which of the following is a consequence of a growing federal budget deficit in the United States? Question 12 2 out of 2 points Given the structure and level of gross replacement rates and the expected future growth of labor earnings subject to the payroll tax, the tax rates used to tax payrolls were increased in the 1980s because: Question 13


The induced-retirement effect of the Social Security pension system induces workers to: Question 14 Unemployment insurance benefits are: Question 15 The Social Security Act was implemented in the United States in: Question 16 Which of the following is an example of the “moral hazard of health insurance�? Question 17 Which of the following subsidizes private provision of health insurance? Question 18 In the United States, individuals pay approximately what percent of the cost of their medical care directly to providers? Question 19 Since 1960, expenditures on health care as a percent of GDP has: Question 20 The percent of total health care costs in the United States paid for by governments is approximately: Question 21 Which of the following programs accounts for the greatest amount of government expenditures on public health in the United States?


Question 22 The government program that provides the health insurance to the poor in the United States is called: Question 23 Which of the following is true about the Medicaid program in the United States? Question 24 Most of the medical bills of Americans in the United States are paid by: Question 25 What would be the effect of having no health insurance available? Question 26 The elderly are what proportion of beneficiaries of Medicare? Question 27 If the quantity of healthcare is more than the efficient quantity, what is the consequence? Question 28 Which of the following could help decrease the rate of increase of spending on health care in the United States? Question 29 What is the moral hazard associated with third party payment for health services? Question 30


The system of third-party payment for medical care in the United States has which of the following effects in the market for health care? --------------------------------------------------ECO 450 Week 7 Quiz For more classes visit www.snaptutorial.com

Review Test Submission: Quiz 5 Course Public Finance Test Quiz 5 This quiz consist of 15 multiple choice questions and covers the material in Chapter 10. Be sure you are in Chapter 10 when you take the quiz. Question 1 . According to the benefit principle, Question 2 If the marginal tax rate is 20% under a proportional tax rate structure, the average tax rate: Question 3 .


If the average tax rate under a progressive tax rate structure is 35%, a possible marginal tax rate is: Question 4 A payroll tax taxes a worker’s wages at 14 percent until the worker earns $60,000 per year. All labor earnings in excess of $60,000 are not subject to tax. The tax rate structure of the payroll tax is therefore: Question 5 The marginal tax rate will eventually exceed the average tax rate for Question 6 Which of the following countries has the highest average tax rate relative to GDP? Question 7 Tax avoidance is: Question 8 Marginal tax rates were reduced in 2001. Other things being equal, this is likely to: Question 9 An excise tax is a: Question 10 . A tax on the value of real estate holdings is a: Question 11


. A 5-percent retail sales tax on all consumer purchases in a state is imposed. The sales tax is: . Question 12 A proportional income tax has an average tax rate that: Question 13 . The tax base of a payroll tax is: Question 14 . Question 15 . A bridge becomes congested after 100 vehicles per hour use it on any day. To achieve efficiency, a toll --------------------------------------------------ECO 450 Week 8 Assignment 2 The Value-Added Tax Is It Good for the United States For more classes visit www.snaptutorial.com


ECO 450 Week 8 Assignment 2 The Value-Added Tax Is It Good for the United States --------------------------------------------------ECO 450 Week 8 Quiz For more classes visit www.snaptutorial.com

Question 1 Housing construction is generally believed to be an industry of constant costs. In the long run, which of the following is true if a $10 per square foot tax on housing construction is collected directly from builders? Question 2 Which of the following is true about a lump-sum tax? Question 3 The demand for medical care is very inelastic. If a 10-percent tax is levied on the sale of medical services and is collected from medical-care providers, then: Question 4 2 out of 2 points Currently, a 10-cent per gallon tax is levied on gasoline consumption. The tax is increased to 20 cents per gallon. The excess burden of the tax will:


Answer Question 5 Suppose an economy is comprised of only two markets: one for food and the other for housing. A tax on food used to finance transfer payments is likely to: Answer Question 6 A $0.30 per unit tax is imposed on a good that reduces the quantity supplied and demanded by 1000 units. What is the deadweight loss (ignore price elasticities)? Answer Question 7 The efficiency-loss ratio relative to tax is: Answer Question 8 2 out of 2 points The current price of compact discs, which are traded in perfectly competitive markets, is $10. A $1 per unit tax is levied on the discs. Annual record sales decline from five million to four million as a result of the tax. Assuming that the income effect of the tax-induced price change is negligible, the excess burden of the tax will be: Answer Question 9


2 out of 2 points If a lump-sum tax is imposed, the slope of the new budget line relative to the budget line prior to the tax: Answer Question 10 If the price elasticity of supply of labor is equal to 0.5 and the price elasticity of demand for labor is –2, then which of the following is likely to result from a tax on labor earnings? Answer Question 11 A lump-sum tax: Answer Question 12 2 out of 2 points Other things being equal, the more inelastic the demand for a taxed good, Answer Question 13 2 out of 2 points Differential tax incidence measures the effect: Answer Question 14 2 out of 2 points


Most studies of tax incidence assume that taxes on labor income and other input services are borne entirely by the workers and other input owners that supply the services. This implies that the: Answer Question 15 Viewed from origin a price distorting tax creates a new budget line with a ______ slope relative to the budget line without the tax. Answer Question 16 2 out of 2 points Which of the following can contribute to a decrease in national saving? Answer Question 17 The total dollar value of the federal debt outstanding is: Answer Question 18 A government’s internal debt is: Answer Question 19 Other things being equal, a government budget surplus: Answer


Question 20 The largest portion of the net federal debt outstanding is owed to: Answer Question 21 2 out of 2 points Which of the following is true about the federal government budget balance in the United States? Answer Question 22 The federal budget has been in deficit: Answer Question 23 As a result of government borrowing to cover deficits, citizens increase the supply of savings to provide themselves with funds to pay anticipated increases in future taxes. Then it follows that increased government borrowing will: Answer Question 24 The high employment deficit is estimated at $100 billion. Assuming that the economy is operating below full employment and that it will not overheat during the year, Answer Question 25


High-employment deficit or surplus is: Answer Question 26 The National Income and Product Accounts budget balance reflects: Answer Question 27 0 out of 2 points A bond that is backed by the tolls collected from a bridge to be constructed from the proceeds of the bond is an example of: Answer Question 28 2 out of 2 points The debt of state and local governments is mostly: Answer Question 29 2 out of 2 points Evidence of “crowding out� in the market for loanable funds at a rate of 8% could be: Answer Question 30 2 out of 2 points


The federal government, its agencies, and the Federal Reserve System: Answer --------------------------------------------------ECO 450 Week 9 Quiz For more classes visit www.snaptutorial.com

Question 1 A tax on interest income: Answer Question 2 Which of the following is true about comprehensive income? Answer Question 3 If the market supply curve of savings is upward sloping, a tax on interest income will: Answer Question 4 2 out of 2 points Most empirical research indicates that the market supply curve of labor hours by prime-age males is:


Answer Question 5 2 out of 2 points The Haig-Simons definition of income: Answer Question 6 Using a regular labor supply curve instead of a compensated supply curve to calculate the excess burden of a tax on labor income will: Answer Question 7 If the return to savings, r, is subject to taxation at rate t, then in equilibrium a saver’s marginal rate of time preference will equal: Answer Question 8 The compensated labor supply curve: Answer Question 9 A flat-rate tax on labor income will: Answer Question 10 Comprehensive income:


Answer Question 11 2 out of 2 points Income from labor services (wages) account for what percentage of gross income in the U.S.? Answer Question 12 2 out of 2 points Comprehensive income: Answer Question 13 2 out of 2 points If the supply of labor is perfectly inelastic, then the incidence of a payroll tax levied entirely on employers will be: Answer Question 14 The higher the compensated elasticity of supply of savings, Answer Question 15 Which of the following will increase a person’s comprehensive income? Answer


Question 16 A taxpayer is in a 33-percent tax bracket and itemizes deductions. He obtains a mortgage from a bank at 9-percent interest. The actual rate of interest he pays is: Answer Question 17 2 out of 2 points Tax preferences: Answer Question 18 If the excess burden from tax is $10 million, lowering marginal tax rates should make the excess burden: Answer Question 19 Tax expenditures are: Answer Question 20 2 out of 2 points Adjusted gross income, as defined by the United States Tax Code, Answer Question 21 2 out of 2 points


“Bracket creep� is no longer a problem in the United States because: Answer Question 22 2 out of 2 points The excess burden of tax preferences: Answer Question 23 Which of the following is true for the federal income tax in the United States? Answer Question 24 Removing savings from the tax base of the personal income tax is likely to: Answer Question 25 Because of the Earned Income Tax Credit, the effective tax rate for the lowest-income taxpayers in the United States is: Answer Question 26 Currently, the tax treatment of capital gains in the United States is such that: Answer


Question 27 The reduction in marginal tax rates will: Answer Question 28 2 out of 2 points As of 2009, the highest marginal tax rate is: Answer Question 29 The exclusion of interest of state and local bonds from taxation by the federal government: Answer Question 30 Under the federal personal income tax rules prevailing as of 2009, Answer --------------------------------------------------ECO 450 Week 10 Quiz For more classes visit www.snaptutorial.com

Question 1 According to the Harberger model of the incidence of the corporate income tax, the tax:


Question 2 Under the corporation income tax in the United States, Question 3 Accelerated depreciation allows corporations to: Question 4 If corporations maximize profits, the short-run incidence of a tax on its profits will be borne by: Question 5 The tax base for the corporate income tax in the United States is: Question 6 The double taxation of dividends under U.S. tax code means: Question 7 If an all-equity firm has after-tax income of $100,000 based on a 34% income tax, what is the after-tax income of an equivalent firm that pays $15,000 in interest that is tax deductible? Question 8 If interest on corporate debt is tax deductible, a firm’s return on equity increases because: Question 9 Assuming that the supply of savings is perfectly inelastic, the corporate income tax prevents the attainment of efficiency by: Question 10


If the supply of savings is not perfectly elastic, the corporate income tax is likely to: Question 11 In the long run a corporate income tax that initially reduces the return to investment in the corpo-rate sector will also: Question 12 If corporations maximize profit, a corporate income tax: Question 13 Assuming that corporations maximize profits and investors seek to maximize the return to their investments, the long-run impact of a corporate income tax is to: Question 14 The effective tax rate is: Question 15 Which of the following is true about the economic effects of the corporate income tax? Question 16 In most states, the retail sales tax can be regarded as equivalent to a: Question 17 The differential incidence of substituting a tax on comprehensive consumption for a tax on compre-hensive income is likely to be: Question 18


Suppose two individuals earn the same salary each year over their lifetimes. One individual saves 25 percent of his income each year, while the other saves nothing. Over their lifetimes under a comprehensive income tax, Question 19 The value-added tax used in the European Union: Question 20 Consumption-in-kind: Question 21 As administered in most states in the United States, the retail sales tax: Question 22 Comprehensive consumption is: Question 23 A flat-rate tax on comprehensive consumption: Question 24 Which of the following taxes is likely to be most favorable for capital accumulation? Question 25 The invoice method of collecting the value-added tax: Question 26 Which of the following statements about taxes on consumption are true?


Question 27 A consumption-type, value-added tax: Question 28 An adult’s life cycle is considered to begin: Question 29 Assuming that a person never receives any cash gifts or bequests, a tax on comprehensive con-sumption is equivalent to a(n): Question 30 A tax on comprehensive consumption --------------------------------------------------ECO 450 Week 11 Final Exam Part 1 For more classes visit www.snaptutorial.com

Question 1 3 out of 3 points A worker earns $2,000 per month before taxes. He pays $140 per month payroll tax on those wages. In addition, the income taxes on those wages are $360 per month. On retirement, the worker receives a Social Security pension of $750 per month. Which of the following statements is true? Answer Question 2


3 out of 3 points The Social Security Act was implemented in the United States in: Answer Question 3 3 out of 3 points The gross replacement rate: Answer Question 4 Social Security tax rates can be reduced if: Answer Question 5 The Social Security retirement system: Answer Question 6 The induced-retirement effect of the Social Security pension system induces workers to: Answer Question 7 Which of the following is true about the Medicare program in the United States? Answer Question 8


The percent of total health care costs in the United States paid for by governments is approximately: Answer Question 9 The government program that provides the health insurance to the poor in the United States is called: Answer Question 10 Under national health insurance as operated in Great Britain, Answer Question 11 Most of the medical bills of Americans in the United States are paid by: Answer Question 12 What is the moral hazard associated with third party payment for health services? Answer Question 13 A proportional income tax has an average tax rate that: Answer Question 14 A tax on real estate is a:


Answer Question 15 If the average tax rate under a progressive tax rate structure is 35%, a possible marginal tax rate is: Answer Question 16 3 out of 3 points A 5-percent retail sales tax on all consumer purchases in a state is imposed. The sales tax is: Answer Question 17 Taxes: Answer Question 18 Which of the following countries has the highest average tax rate relative to GDP? Answer Question 19 The efficiency-loss ratio relative to tax is: Answer Question 20 If a lump-sum tax is imposed, the slope of the new budget line relative to the budget line prior to the tax:


Answer Question 21 3 out of 3 points Viewed from origin a price distorting tax creates a new budget line with a ______ slope relative to the budget line without the tax. Answer Question 22 A $0.30 per unit tax is imposed on a good that reduces the quantity supplied and demanded by 1000 units. What is the deadweight loss (ignore price elasticities)? Answer Question 23 Other things being equal, the more inelastic the demand for a taxed good, Answer Question 24 The supply of new cars is perfectly elastic. A $400 per car tax is levied on buyers. As a result of the tax, Answer Question 25 3 out of 3 points The federal government, its agencies, and the Federal Reserve System:


Answer Question 26 The National Income and Product Accounts budget balance reflects: Answer Question 27 The total dollar value of the federal debt outstanding is: Answer Question 28 The debt of state and local governments is mostly: Answer Question 29 If the federal government runs a surplus consistently, then which of the following is likely to occur? Answer Question 30 An increase in government borrowing has no effect on the willingness of citizens to save or on the demand for credit. Increased borrowing to cover deficits will therefore: Answer --------------------------------------------------ECO 450 Week 11 Final Exam Part 2 For more classes visit


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Question 1 Most empirical research indicates that the market supply curve of labor hours by prime-age males is: Answer Question 2 The higher the compensated elasticity of supply of savings, Answer Question 3 If the return to savings, r, is subject to taxation at rate t, then in equilibrium a saver’s marginal rate of time preference will equal: Answer Question 4 The Haig-Simons definition of income: Answer Question 5 Comprehensive income: Answer Question 6 Which of the following is the result of The Economic Growth and Tax Relief Reconciliation Act enacted in 2001?


Answer Question 7 The reduction in marginal tax rates will: Answer Question 8 Which of the following is true for the federal income tax in the United States? Answer Question 9 The excess burden of tax preferences: Answer Question 10 Tax expenditures are: Answer Question 11 Accelerated depreciation allows corporations to: Answer Question 12 In the long run a corporate income tax that initially reduces the return to investment in the corpoÂŹrate sector will also: Answer Question 13


If corporations maximize profits, the short-run incidence of a tax on its profits will be borne by: Answer Question 14 If an all-equity firm has after-tax income of $100,000 based on a 34% income tax, what is the after-tax income of an equivalent firm that pays $15,000 in interest that is tax deductible? Answer Question 15 If the supply of savings is not perfectly elastic, the corporate income tax is likely to: Answer Question 16 Assuming that a person never receives any cash gifts or bequests, a tax on comprehensive conÂŹsumption is equivalent to a(n): Answer Question 17 In most states, the retail sales tax can be regarded as equivalent to a: Answer Question 18 Consumption-in-kind: Answer


Question 19 A consumption-type, value-added tax: Answer Question 20 The differential incidence of substituting a tax on comprehensive consumption for a tax on compreÂŹhensive income is likely to be: Answer Question 21 If a tax on real estate results in a decrease in the supply of housing, the tax will be: Answer Question 22 A comprehensive wealth tax will: Answer Question 23 If the annual amount of savings is $10 billion, what is the effect of a wealth tax assuming supply is responsive? Answer Question 24 If the annual amount of savings is $10 billion, what is the effect of a wealth tax assuming supply is perfectly inelastic? Answer Question 25


A comprehensive wealth tax base includes: Answer Question 26 What is generally the best measure of fiscal capacity for local governments? Answer Question 27 In general, local tax bases tend to be: Answer Question 28 Under a federal system of government, Answer Question 29 A federal highway grant will provide funds for roads supplied by state and local governments if these governments pay 50 percent of the cost of the roads. This grant is an example of: Answer Question 30 A grant received by a local government will: Answer ---------------------------------------------------

Eco 450 entire course final exam  

For more classes visit www.snaptutorial.com ECO 450 Week 1 DQ 1 The Basics ECO 450 Week 1 DQ 2 Government Expenditures ECO 450 Week 2 DQ 1...

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