Question 1

Money payments by governments to individuals for which no services or goods are supplied are

Accepted Answer

A) black market payments. 
B) merit payments. 
C) transfer payments. 
D) demerit payments. 
A) black market payments. 
B) merit payments. 
C) transfer payments. 
D) demerit payments.

Question 2

The study of collective decision making is also known as the theory of

Accepted Answer

A) collective policy. 
B) public choice. 
C) private choice. 
D) government policy. 
A) collective policy. 
B) public choice. 
C) private choice. 
D) government policy.

Question 3

Suppose the income tax rate schedule is 0% on the first $10,000;10% on the next $20,000;20% on the next $20,000;30% on the next $20,000;and 40% on any income over $70,000.Family A earns $28,000 a year and Family B earns $65,000 a year.Both receive a ten percent raise.The additional tax owed by A is ________ and the extra tax owed by B is ________.

Accepted Answer

The answer of Suppose the income tax rate schedule is...

Question 4

Once produced,satellite signals can be consumed by more or fewer consumers without any change in cost.Discuss the problems this poses for having private markets produce the socially optimal quantity of satellite programming.

Accepted Answer

Satellite signals are not pure private g

Question 5

Suppose the tax rate on the first $10,000 of income is zero;it is 10% on the next $20,000;20% on the next $20,000;30% on the next $20,000;and 40% on income over $70,000.Family C has an income of $100,000.What is the family's income tax bill?

Accepted Answer

A) $40,000 
B) $22,000 
C) $30,000 
D) $20,000 
A) $40,000 
B) $22,000 
C) $30,000 
D) $20,000

Question 6

Public goods are characterized by free-rider problems because

Accepted Answer

A) public goods are usually things that people really do not want to consume. 
B) public goods are characterized by the principle of rival consumption. 
C) no one can be excluded from the benefits of public goods once they have been produced. 
D) public goods can easily be subdivided into small units. 
A) public goods are usually things that people really do not want to consume. 
B) public goods are characterized by the principle of rival consumption. 
C) no one can be excluded from the benefits of public goods once they have been produced. 
D) public goods can easily be subdivided into small units.

Question 7

An example of a transfer in kind is

Accepted Answer

A) national defense. 
B) subsidized public housing. 
C) Social Security. 
D) employment benefits. 
A) national defense. 
B) subsidized public housing. 
C) Social Security. 
D) employment benefits.

Question 8

In Canada,proponents of a flat tax system replacing the current progressive income tax system argue that
I.A flat tax system would result in higher savings and investment.
II.A flat tax system would result in more economic growth.

Accepted Answer

A) I only 
B) II only 
C) Both I and II 
D) Neither I nor II 
A) I only 
B) II only 
C) Both I and II 
D) Neither I nor II

Question 9

The main source of receipts for the federal government is

Accepted Answer

A) individual income tax. 
B) excise tax on gasoline and alcohol. 
C) corporate income tax. 
D) GST/HST revenues. 
A) individual income tax. 
B) excise tax on gasoline and alcohol. 
C) corporate income tax. 
D) GST/HST revenues.

Question 10

Corporate profits are taxed

Accepted Answer

A) at too low a rate. 
B) three times once by the corporate tax system,again by the personal tax system,and again as capital gains. 
C) twice once by the corporate tax system and again by the personal tax system when they are paid to stockholders as dividends. 
D) only when a stockholder sells his or her shares of stock. 
A) at too low a rate. 
B) three times once by the corporate tax system,again by the personal tax system,and again as capital gains. 
C) twice once by the corporate tax system and again by the personal tax system when they are paid to stockholders as dividends. 
D) only when a stockholder sells his or her shares of stock.

Question 11

The distinguishing characteristic of private goods is that

Accepted Answer

A) they can be sold but not rented. 
B) their use is exclusive to the people who purchase them. 
C) they can be sold or rented,but not borrowed. 
D) the principle of rival consumption does not apply to them. 
A) they can be sold but not rented. 
B) their use is exclusive to the people who purchase them. 
C) they can be sold or rented,but not borrowed. 
D) the principle of rival consumption does not apply to them.

Question 12

The purpose of Canadian anticombines legislation is

Accepted Answer

A) to reduce unemployment. 
B) to increase the power of monopoly. 
C) to maximize employment for a given price level. 
D) to reduce firms' monopoly power. 
A) to reduce unemployment. 
B) to increase the power of monopoly. 
C) to maximize employment for a given price level. 
D) to reduce firms' monopoly power.

Question 13

Suppose the first $20,000 of income is nontaxable and the tax rate on all additional income is 25 percent.This tax rate system is

Accepted Answer

A) progressive. 
B) proportional. 
C) regressive. 
D) indeterminate without more information. 
A) progressive. 
B) proportional. 
C) regressive. 
D) indeterminate without more information.

Question 14

Suppose the income tax rate is 0% on the first $20,000,20 percent on the next $20,000,30 percent on the next $20,000,40 percent on the next $20,000,and 50 percent on all income over that.The Arm family has a taxable income of $80,000.What is the average tax rate for this family?

Accepted Answer

A) 22.5 percent 
B) 27.5 percent 
C) 35 percent 
D) 37.5 percent 
A) 22.5 percent 
B) 27.5 percent 
C) 35 percent 
D) 37.5 percent

Question 15

Dividends are paid to shareholders out of a corporation's

Accepted Answer

A) capital gains. 
B) after-tax profits. 
C) before-tax profits. 
D) retained earnings. 
A) capital gains. 
B) after-tax profits. 
C) before-tax profits. 
D) retained earnings.

Question 16

Suppose the tax rate on the first $10,000 of income is zero;10% on the next $20,000;20% on the next $20,000;30% on the next $20,000;and 40% on income over $70,000.Family C has an income of $100,000.The family's income tax bill will be $________.

Accepted Answer

The answer of Suppose the tax rate on the first...

Question 17

Public goods are goods or services that

Accepted Answer

A) are produced by the government. 
B) are provided only by the capitalistic system. 
C) can be consumed by additional users at no additional cost. 
D) are provided only in command economies. 
A) are produced by the government. 
B) are provided only by the capitalistic system. 
C) can be consumed by additional users at no additional cost. 
D) are provided only in command economies.

Question 18

The theory of public choice is

Accepted Answer

A) the analysis of election outcomes. 
B) the analysis of collective decision making. 
C) the analysis of market outcomes. 
D) the analysis of political poll results. 
A) the analysis of election outcomes. 
B) the analysis of collective decision making. 
C) the analysis of market outcomes. 
D) the analysis of political poll results.

Question 19

Suppose you purchased 100 shares of stock in 1990 for $25 a share,and you sell them today for $50 a share.If the capital gains tax is 28 percent,your tax liability is $________.

Accepted Answer

The answer of Suppose you purchased 100 shares of stock...

Question 20

Suppose you purchased 100 shares of stock in 2000 for $20 a share,and the price now is $30 a share.Your capital gain,should you sell the stock,is

Accepted Answer

A) $1,000. 
B) $3,000. 
C) $1,500. 
D) indeterminate without the inflation rate. 
A) $1,000. 
B) $3,000. 
C) $1,500. 
D) indeterminate without the inflation rate.

Money payments by governments to individuals for which no services or goods are supplied are

The study of collective decision making is also known as the theory of

Once produced,satellite signals can be consumed by more or fewer consumers without any change in cost.Discuss the problems this poses for having private markets produce the socially optimal quantity of satellite programming.

Suppose the tax rate on the first $10,000 of income is zero;it is 10% on the next $20,000;20% on the next $20,000;30% on the next $20,000;and 40% on income over $70,000.Family C has an income of $100,000.What is the family's income tax bill?

Public goods are characterized by free-rider problems because

An example of a transfer in kind is

In Canada,proponents of a flat tax system replacing the current progressive income tax system argue that I.A flat tax system would result in higher savings and investment. II.A flat tax system would result in more economic growth.

The main source of receipts for the federal government is

Corporate profits are taxed

The distinguishing characteristic of private goods is that

The purpose of Canadian anticombines legislation is

Suppose the first $20,000 of income is nontaxable and the tax rate on all additional income is 25 percent.This tax rate system is

Suppose the income tax rate is 0% on the first $20,000,20 percent on the next $20,000,30 percent on the next $20,000,40 percent on the next $20,000,and 50 percent on all income over that.The Arm family has a taxable income of $80,000.What is the average tax rate for this family?

Dividends are paid to shareholders out of a corporation's

Suppose the tax rate on the first $10,000 of income is zero;10% on the next $20,000;20% on the next $20,000;30% on the next $20,000;and 40% on income over $70,000.Family C has an income of $100,000.The family's income tax bill will be $________.

Public goods are goods or services that

The theory of public choice is

Suppose you purchased 100 shares of stock in 1990 for $25 a share,and you sell them today for $50 a share.If the capital gains tax is 28 percent,your tax liability is $________.

Suppose you purchased 100 shares of stock in 2000 for $20 a share,and the price now is $30 a share.Your capital gain,should you sell the stock,is

The Nature of Economics

Production Possibilities and Economic Systems

Demand and Supply

Introduction to Macroeconomics

Measuring the Economys Performance

Modelling Real Gdp and the Price Level in the Long Run

Economic Growth and Development

Modelling Real Gdp and the Price Level in the Short Run

Consumption, investment, and the Multiplier

Fiscal Policy and the Public Debt

Money and the Banking System

Money Creation and Deposit Insurance

The Bank of Canada and Monetary Policy

Issues in Stabilization Policy

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

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Exam 10: The Public Sector

Money payments by governments to individuals for which no services or goods are supplied are

The study of collective decision making is also known as the theory of

Once produced,satellite signals can be consumed by more or fewer consumers without any change in cost.Discuss the problems this poses for having private markets produce the socially optimal quantity of satellite programming.

Suppose the tax rate on the first $10,000 of income is zero;it is 10% on the next $20,000;20% on the next $20,000;30% on the next $20,000;and 40% on income over $70,000.Family C has an income of $100,000.What is the family's income tax bill?

Public goods are characterized by free-rider problems because

An example of a transfer in kind is

In Canada,proponents of a flat tax system replacing the current progressive income tax system argue that I.A flat tax system would result in higher savings and investment. II.A flat tax system would result in more economic growth.

The main source of receipts for the federal government is

Corporate profits are taxed

The distinguishing characteristic of private goods is that

The purpose of Canadian anticombines legislation is

Suppose the first $20,000 of income is nontaxable and the tax rate on all additional income is 25 percent.This tax rate system is

Suppose the income tax rate is 0% on the first $20,000,20 percent on the next $20,000,30 percent on the next $20,000,40 percent on the next $20,000,and 50 percent on all income over that.The Arm family has a taxable income of $80,000.What is the average tax rate for this family?

Dividends are paid to shareholders out of a corporation's

Suppose the tax rate on the first $10,000 of income is zero;10% on the next $20,000;20% on the next $20,000;30% on the next $20,000;and 40% on income over $70,000.Family C has an income of $100,000.The family's income tax bill will be $________.

Public goods are goods or services that

The theory of public choice is

Suppose you purchased 100 shares of stock in 1990 for $25 a share,and you sell them today for $50 a share.If the capital gains tax is 28 percent,your tax liability is $________.

Suppose you purchased 100 shares of stock in 2000 for $20 a share,and the price now is $30 a share.Your capital gain,should you sell the stock,is

The Nature of Economics

Production Possibilities and Economic Systems

Demand and Supply

Introduction to Macroeconomics

Measuring the Economys Performance

Modelling Real Gdp and the Price Level in the Long Run

Economic Growth and Development

Modelling Real Gdp and the Price Level in the Short Run

Consumption, investment, and the Multiplier

Fiscal Policy and the Public Debt

Money and the Banking System

Money Creation and Deposit Insurance

The Bank of Canada and Monetary Policy

Issues in Stabilization Policy

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

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