Exam 18: Public Choice, Taxes, and the Distribution of Income

The political process is more likely to serve the interests of individuals whose preferences are in the middle, rather than individuals with preferences that are much to the left or right of the political center. This statement is best explained by which of the following?

Table 18-9 Table 18-9 shows the income tax brackets and tax rates for single taxpayers in Monrovia. -Refer to Table 18-9. How much income tax does Sylvia pay if she is a single taxpayer with an income of $70,000?

The public choice model assumes that government policymakers

The Gini coefficient is measured by

If you pay $2,000 in taxes on an income of $20,000, and a tax of $3,000 on an income of $30,000, then over this range of income the tax is

Suppose $1 billion is available in the budget and Congress is considering allocating the funds to one of the following three alternatives: a. subsidies for education b. research on Alzheimer's c. increased border security If voters prefer a to b and b to c, then if preferences are transitive

Table 18-11 Table 18-11 shows income distribution data for two countries. Use this data to answer the following questions. -Refer to Table 18-11. a. Draw a Lorenz curve for each country. b. Which country has the more equal distribution of income? c. Based on the Lorenz curves for the two countries, can you determine which country has the more progressive tax system? Explain your answer.

Figure 18-1 -Refer to Figure 18-1. Area E + H represents

Explain why it is more difficult to determine the incidence of the corporate income tax than it is to determine the incidence of the tax on gasoline.

Figure 18-2 Figure 18-2 shows a demand curve and two sets of supply curves, one set more elastic than the other. -Refer to Figure 18-2. If the government imposes an excise tax of $1.00 on every unit sold, the government's revenue from the tax is represented by the area

Is a typical person likely to gather more information when buying a new computer or when voting for a member of the U.S. Senate? Why?

Which of the following is a consequence of the voting paradox?

The federal corporate income tax is

What is regulatory capture?

Which of the following is an example of rent seeking behavior?

Over the past 40 years in the United States, federal revenues as a share of gross domestic product have

Which of the following statements is true?

Table 18-1 Suppose $1 billion is available in the budget and Congress is considering allocating the funds to one of the following three alternatives: 1) Subsidies for education, 2) Research on Alzheimer's or 3) Increased border security. Table 18-1 shows three voters' rankings of the alternatives. -Refer to Table 18-1. Suppose a series of votes are taken in which each pair of alternatives is considered in turn. The first pair considered is between subsidies for education and research on Alzheimer's. The second pair considered is between Alzheimer's research and increased border security. The third pair considered is between education subsidies and increased border security. In this case, the collective preferences of the voters

Both Presidents Kennedy and Reagan proposed significant cuts in income taxes because

During the past 30 years, income inequality in the United States has increased in part due to expanding international trade. How does expanding international trade contribute to income inequality?