1. Employers will bear the full burden of the payroll tax iflabor supply is (Points : 1)
perfectly inelastic.
perfectly elastic.
backward bending.
upward sloping.
2. Any point on the utility possibilities frontier is ________ .(Points : 1)
inefficient because both people could be made better offsimultaneously
inefficient because it is only possible to make one person betteroff by making the other person worse off
efficient because it is only possible to make one person better offby making the other person worse off
efficient because both people could be made better offsimultaneously
3. If the government wishes to encourage firms to internalizeexternalities, they should ________ activities resulting innegative externalities and ________ activities resulting inpositive externalities (Points : 1)
tax; subsidize
subsidize; tax
ban; generate
place an injunction against; tax
4. The measure or value upon which a tax is levied is the (Points :1)
tax base.
tax rate.
tax structure.
tax incidence.
5. The total amount of tax you pay divided by your total income isthe (Points : 1)
marginal tax rate.
average tax rate.
total tax rate.
proportional tax rate.
6. Marginal damage cost is the (Points : 1)
additional harm done by increasing the level of anexternality-producing activity by one unit.
additional cost to society resulting from a privately owned firmproducing one more unit of a product.
amount a consumer pays to produce an additional unit of a good.
additional cost to society resulting from a consumer consuming onemore unit of a good.
7. The best measurement of individual well-being is (Points :1)
wealth.
income.
occupation.
utility.
8. Economic income is (Points : 1)
the amount of money a household can spend during a given timeperiod without increasing or decreasing its net assets.
income from the ownership of real property and financialholdings.
differences in wages that result from differences in workingconditions.
payments by government to people who do not currently supply goodsor services in exchange.
9. The ________ tax rate is the tax rate paid on any additionalincome earned. (Points : 1)
average
total
marginal
proportional
10. Excess burden is the (Points : 1)
ultimate distribution of a tax.
shifting of the tax from one burden to another.
amount by which the burden of a tax exceeds the total revenuecollected.
differential impact the tax has on high-and low-income groups
ScholarMatic: Explanation & Answer
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