Question 1\u00a0\tHousing 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\tfrom builders?\u00a0\tQuestion 2\u00a0\tWhich of the following is true about a lump-sum tax?\u00a0\tQuestion 3\u00a0\tThe 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:\u00a0\tQuestion 4\u00a0\t2 out of 2 points\u00a0\tCurrently, 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:\u00a0\tAnswer\u00a0\tQuestion 5\u00a0\tSuppose 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:\u00a0\tAnswer\u00a0\tQuestion 6\u00a0\tA $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)?\u00a0\tAnswer\u00a0\tQuestion 7\u00a0\tThe efficiency-loss ratio relative to tax is:\u00a0\tAnswer\u00a0\tQuestion 8\u00a0\t2 out of 2 points\u00a0\tThe 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:\u00a0\tAnswer\u00a0\tQuestion 9\u00a0\t2 out of 2 points\u00a0\tIf a lump-sum tax is imposed, the slope of the new budget line relative to the budget line prior to the tax:\u00a0\tAnswer\u00a0\tQuestion 10\u00a0\tIf the price elasticity of supply of labor is equal to 0.5 and the price elasticity of demand for labor is “\ufffd2, then which of the following is likely to result from a tax on labor earnings?\u00a0\tAnswer\u00a0\tQuestion 11\u00a0\tA lump-sum tax:\u00a0\tAnswer\u00a0\tQuestion 12\u00a0\t2 out of 2 points\u00a0\tOther things being equal, the more inelastic the demand for a taxed good,\u00a0\tAnswer\u00a0\tQuestion 13\u00a0\t2 out of 2 points\u00a0\tDifferential tax incidence measures the effect:\u00a0\tAnswer\u00a0\tQuestion 14\u00a0\t2 out of 2 points\u00a0\tMost 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:\u00a0\tAnswer\u00a0\tQuestion 15\u00a0\tViewed from origin a price distorting tax creates a new budget line with a ______ slope relative to the budget line without the tax.\u00a0\tAnswer\u00a0\tQuestion 16\u00a0\t2 out of 2 points\u00a0\tWhich of the following can contribute to a decrease in national saving?\u00a0\tAnswer\u00a0\tQuestion 17\u00a0\tThe total dollar value of the federal debt outstanding is:\u00a0\tAnswer\u00a0\tQuestion 18\u00a0\tA government’s internal debt is:\u00a0\tAnswer\u00a0\tQuestion 19\u00a0\tOther things being equal, a government budget surplus:\u00a0\tAnswer\u00a0\tQuestion 20\u00a0\tThe largest portion of the net federal debt outstanding is owed to:\u00a0\tAnswer\u00a0\tQuestion 21\u00a0\t2 out of 2 points\u00a0\tWhich of the following is true about the federal government budget balance in the United States?\u00a0\tAnswer\u00a0\tQuestion 22\u00a0\tThe federal budget has been in deficit:\u00a0\tAnswer\u00a0\tQuestion 23\u00a0\tAs 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:\u00a0\tAnswer\u00a0\tQuestion 24\u00a0\tThe 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,\u00a0\tAnswer\u00a0\tQuestion 25\u00a0\tHigh-employment deficit or surplus is:\u00a0\tAnswer\u00a0\tQuestion 26\u00a0\tThe National Income and Product Accounts budget balance reflects:\u00a0\tAnswer\u00a0\tQuestion 27\u00a0\t0 out of 2 points\u00a0\tA bond that is backed by the tolls collected from a bridge to be constructed from the proceeds of the bond is an example of:\u00a0\tAnswer\u00a0\tQuestion 28\u00a0\t2 out of 2 points\u00a0\tThe debt of state and local governments is mostly:\u00a0\tAnswer\u00a0\tQuestion 29\u00a0\t2 out of 2 points\u00a0\tEvidence of “crowding out”\ufffd in the market for loanable funds at a rate of 8% could be:\u00a0\tAnswer\u00a0\tQuestion 30\u00a0\t2 out of 2 points\u00a0\tThe federal government, its agencies, and the Federal Reserve System:\u00a0\tAnswer<\/p>\n","protected":false},"excerpt":{"rendered":"
Question 1\u00a0 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?\u00a0 Question Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-210770","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/210770","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=210770"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/210770\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=210770"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=210770"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=210770"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}