Public Finance and Public Choice MCQs
Public Finance and Public Choice MCQs
Answer these 20 Elasticities in Microeconomics MCQs and assess your grip on the subject of Elasticities in Microeconomics.
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1: According to Ability-to-pay principle those with greatest ability to pay taxes should pay ____ than those with less ability to pay
A. More Tax
B. Less Tax
C. Income Tax
D. Excise Tax
2: A sales tax on individual products such as alcohol, tobacco is called
A. Progressive tax
B. Regressive tax
C. Flat Tax
D. Excise Tax
3: ____ is a tax that charges all income earners the same percentage of their income.
A. Progressive tax
B. Regressive tax
C. Flat Tax
D. Excise Tax
4: Exchanging votes to get support for legislation is called.
A. Enrolling
B. Logrolling
C. Segmental rolling
D. None of these
5: Median voter model is A model that predicts candidates will choose a position in the ______ of the distribution
A. Start
B. Middle
C. End
D. None of these
6: _____ is designed so that a larger percentage of taxable income is taken as taxable income increases.
A. Progressive tax
B. Regressive tax
C. Flat Tax
D. Excise Tax
7: Rational ignorance is sufficient incentive to be informed
A. True
B. False
8: In _____ smaller percentage of taxable income is taken as taxable income increases
A. Progressive tax
B. Regressive tax
C. Flat Tax
D. Excise Tax
9: Groups with an intense interest in particular voting issues are called
A. Special interest groups
B. Public interest groups
C. General interest groups
D. Common interest groups
10: The concept that people with different levels of income should be treated differently is called
A. Horizontal Equity
B. Vertical Equity
C. Economic Equity
D. Marginal Equity
11: What did government expenditures do between 1950 and 1975?
A. Rapidly shrink
B. Remain constant
C. Grow slowly
D. Rapidly expand
12: What event in 2008–2009 had a lasting influence on government expenditures?
A. Global expansion
B. Global recession
C. Global depression
D. Global boycott
13: Most federal taxes are aimed at ______.
A. Consumption
B. Sales
C. Property
D. Income
14: Payroll taxes are levied on ______-related income.
A. Work
B. Investment
C. Rent
D. Gambling
15: The current federal income tax is a ______ tax.
A. Regressive
B. Progressive
C. Flat
D. Consumption
16: What do we call a sales tax on individual products such as alcohol, tobacco, and gasoline?
A. Progressive tax
B. Payroll tax
C. Excise tax
D. Flat tax
17: The fraction of additional income paid in taxes is called the ______ tax rate.
A. Average
B. Marginal
C. Excise
D. Income
18: Historically, most state and local tax revenue has come from ______ taxes.
A. Property
B. Sales
C. Excise
D. Income
19: A flat tax is also called a ______.
A. Transfer
B. Grant
C. Sales tax
D. Proportional tax
20: Public choice economists believe that government actions are an outgrowth of ______.
A. Theoretical models
B. Individual behavior
C. Fiscal policy
D. Historical forces
21: The application of economics to politics is known as ______.
A. Public choice theory
B. Progressive taxation theory
C. Median voter model
D. Rational ignorance approach
22: The lack of incentive to be informed is known as ______.
A. Log rolling
B. Public choice
C. Rational ignorance
D. Irrational exuberance
23: Special interest groups ______.
A. Are theorists who study elections under the assumption that all political activity is motivated primarily by self-interest
B. Are unmotivated to spend the time and energy necessary to learn about the candidates and issues in an election
C. Try to judge public sentiment and align their views to what is publicly popular during a given election cycle
D. Have an intense interest in particular voting issues that may be different from the interests of the general public
24: When individuals and firms use resources, like money and lobbyists, to influence government to grant them special privileges, it is known as ______.
A. Rent seeking
B. Log rolling
C. Public choice
D. Individual consumption
25: When politicians trade votes for their legislation, it is known as ______.
A. Rational ignorance
B. Log rolling
C. Public choice
D. Median consumption
26: The private benefit is ________, while the social benefit is ________.
A. The benefit recieved by the consumer of a good or service; the total benefits from consuming the good
B. The marginal benefit from reducing another ton of pollution should be equal to the marginal cost;the benefit recieved by the consumer of a good or service
C. The social benefit from consuming the good to be greater than the private benefit;A situation in which the market fails to produce the efficient level of output
D. None of these
27: Public goods are a form of _____.
A. Market Failure
B. Free Market
C. Steeper
D. Perfectly vertical
28: Entrepreneurship (profits) account for about ______ percent of national income.
A. 3
B. 23
C. 53
D. 73
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Public Finance and Public Choice MCQs
