Question 1

Lump sum grants are sometimes referred to as categorical grants.

Accepted Answer

A) True 
 B)False

Question 2

The town of Little Bohemia has an estimated elasticity of demand for land of 2.What effect would there be to the quantity demanded from a 10% decrease in the price of land due to a tax increase?

Accepted Answer

The formula for elasticity is

Question 3

It is easier to avoid state and local taxes than federal taxes.

Accepted Answer

A) True 
 B)False

Question 4

Some cities have a relatively high residential property tax,while others have a low residential property tax.Give an explanation for this.

Accepted Answer

The number of people and their preferenc

Question 5

__________ explores the roles of different level of government and the ways in which they relate to each other

Accepted Answer

A) Federal system 
B) Club model 
C) Centralization. 
D) Fiscal federalism 
A) Federal system 
B) Club model 
C) Centralization. 
D) Fiscal federalism

Question 6

Disadvantages of decentralization are

Accepted Answer

A) intercommunity externalities. 
B) forgone scale economies in the provision of public goods. 
C) inefficient taxation. 
D) the lack of ability to redistribute income. 
E) all of the above. 
A) intercommunity externalities. 
B) forgone scale economies in the provision of public goods. 
C) inefficient taxation. 
D) the lack of ability to redistribute income. 
E) all of the above.

Question 7

The property tax is very popular because

Accepted Answer

A) it is fairly assigned. 
B) it is administered locally. 
C) it is very regressive. 
D) of all of the above. 
E) of none of the above. 
A) it is fairly assigned. 
B) it is administered locally. 
C) it is very regressive. 
D) of all of the above. 
E) of none of the above.

Question 8

A federal system consists of one level of government to provide public goods and services.

Accepted Answer

A) True 
 B)False

Question 9

For the last 100 years,the level of government that has seen the largest increase in its percentage of expenditures is

Accepted Answer

A) local. 
B) state. 
C) federal. 
D) all of the above. 
A) local. 
B) state. 
C) federal. 
D) all of the above.

Question 10

-Refer to Figure 22.3.Suppose that the supply curve is constant at $10.Suppose further that the before?tax demand curve DB can be written as B = 20 - P/2,where B is the number of structures per year and P is the price.
(A)Find B0.
(B)Suppose that the after-tax demand curve,   
,can be written as B = 20 - P.Find B1 and

Accepted Answer

(A)Insert $10 into before-tax demand equ

Question 11

The Tiebout model can be summarized as "voting with the invisible hand."

Accepted Answer

A) True 
 B)False

Question 12

The proportion of total direct expenditure made by local governments is called the centralization ratio.

Accepted Answer

A) True 
 B)False

Question 13

The flypaper effect causes money to move from where it initially hits and sticks somewhere down the bureaucratic chain.

Accepted Answer

A) True 
 B)False

Question 14

Local property taxes are used to provide

Accepted Answer

A) education. 
B) fire protection. 
C) libraries. 
D) all of the above. 
A) education. 
B) fire protection. 
C) libraries. 
D) all of the above.

Question 15

-Refer to Figure 22.5.Suppose that the initial budget constraint AB is given by the equation G = 150 - c/5,where G is the units of public good and c is consumption.A closed-ended matching grant up to 100 units of public good is proposed.If the slope of line segment AD is - 2,write the equation of the new budget constraint after a closed-ended matching grant.

Accepted Answer

For quantities of G between 0 and 100,th

Question 16

When did the percentage of federal grants in state and local expenditures reach its peak?

Accepted Answer

A) 1960s 
B) 1970s 
C) 1980s 
D) 1990s 
A) 1960s 
B) 1970s 
C) 1980s 
D) 1990s

Lump sum grants are sometimes referred to as categorical grants.

The town of Little Bohemia has an estimated elasticity of demand for land of 2.What effect would there be to the quantity demanded from a 10% decrease in the price of land due to a tax increase?

It is easier to avoid state and local taxes than federal taxes.

Some cities have a relatively high residential property tax,while others have a low residential property tax.Give an explanation for this.

__________ explores the roles of different level of government and the ways in which they relate to each other

Disadvantages of decentralization are

The property tax is very popular because

A federal system consists of one level of government to provide public goods and services.

For the last 100 years,the level of government that has seen the largest increase in its percentage of expenditures is

The Tiebout model can be summarized as "voting with the invisible hand."

The proportion of total direct expenditure made by local governments is called the centralization ratio.

The flypaper effect causes money to move from where it initially hits and sticks somewhere down the bureaucratic chain.

Local property taxes are used to provide

When did the percentage of federal grants in state and local expenditures reach its peak?

Introduction

Tools of Positive Analysis

Tools of Normative Analysis

Public Goods

Externalities

Political Economy

Education

Cost-Benefit Analysis

The Health Care Market

Government and the Market for Health Care

Social Security

Income Redistribution: Conceptual Issues

Expenditure Programs for the Poor

Taxation and Income Distribution

Taxation and Efficiency

Efficient and Equitable Taxation

The Personal Income Tax

Personal Taxation and Behavior

The Corporation Tax

Deficit Finance

Fundamental Tax Reform: Taxes on Consumption and Wealth

Filters

Exam 22: Public Finance in a Federal System

Lump sum grants are sometimes referred to as categorical grants.

The town of Little Bohemia has an estimated elasticity of demand for land of 2.What effect would there be to the quantity demanded from a 10% decrease in the price of land due to a tax increase?

It is easier to avoid state and local taxes than federal taxes.

Some cities have a relatively high residential property tax,while others have a low residential property tax.Give an explanation for this.

__________ explores the roles of different level of government and the ways in which they relate to each other

Disadvantages of decentralization are

The property tax is very popular because

A federal system consists of one level of government to provide public goods and services.

For the last 100 years,the level of government that has seen the largest increase in its percentage of expenditures is

The Tiebout model can be summarized as "voting with the invisible hand."

The proportion of total direct expenditure made by local governments is called the centralization ratio.

The flypaper effect causes money to move from where it initially hits and sticks somewhere down the bureaucratic chain.

Local property taxes are used to provide

When did the percentage of federal grants in state and local expenditures reach its peak?

Introduction

Tools of Positive Analysis

Tools of Normative Analysis

Public Goods

Externalities

Political Economy

Education

Cost-Benefit Analysis

The Health Care Market

Government and the Market for Health Care

Social Security

Income Redistribution: Conceptual Issues

Expenditure Programs for the Poor

Taxation and Income Distribution

Taxation and Efficiency

Efficient and Equitable Taxation

The Personal Income Tax

Personal Taxation and Behavior

The Corporation Tax

Deficit Finance

Fundamental Tax Reform: Taxes on Consumption and Wealth

Filters