Micro Final

Which of the following would we expect to have the highest poverty rate?

African-American households headed by females

"Player drafts" of professional athletes:

promote monopsony in the hiring of professional athletes.

with respect to local finance

property taxes are the basic source of revenue and education is the major type of expenditure

If each taxpayer paid the same lump-sum amount regardless of income level, the tax system would be:

regressive

a tax that takes a larger proportion of income from low income groups than from high income groups is a:

regressive tax

the economic term for a firm that is the sole buyer in a market is

monopsonist

a craft union attempts to increase wage rates by...

shifting the labor supply curve to the left

overall, the U.S. tax system (combined federal, state, and local) is:

slightly progressive

the ability-to-pay principle of taxation

suggests that taxes should vary directly with people's income and wealth

The primary gain from international trade is:

tariff revenue

a progressive tax is such that

tax rates are higher the greater one's income

a competitive employer should hire additional labor as long as...

the MRP exceeds the wage rate

which of the following is not a social insurance program

unemployment compensation

the incidence of a tax pertains to...

who actually bears the burden of the tax

Refer to the figure in which S is the before-tax supply curve and St is the supply curve after an excise tax is imposed. The efficiency loss of this tax will be area:

ECF

Taxes on commodities or on purchases are known as:

corporate income taxes

marginal resource cost refers to the

increase in total cost resulting from the production of one more unit of output

craft unions:

only organize workers who have a particular skill

the largest source of tax revenue for the U.S. federal government is:

personal income tax

authoritative estimates suggest that currently union workers on the average:

realize a 15% wage advantage over non-union workers in the same occupation

proprietary income refers to.

revenue generated by government-run business

Refer to the graph. Other things equal, an increase in labor productivity would cause a:

shift from D2 to D3.

ability-to-pay principle of taxation

suggests that taxes should vary directly with people's income and wealth

Wage differentials may result from all the following except

the tendency of qualified workers to move from lower pay jobs to higher pay jobs

In determining one's personal income tax, taxable income is:

total income less deductions and exemptions

If the supply of a product is perfectly elastic and demand is downsloping, an excise tax of $2 per unit will increase price by:

$2 and reduce equilibrium output

which of the following gini ratios indicates the highest degree of income inequality

0.78

in which of the given market situations will the largest portion of an excise tax of a specified amount per unit of output be borne by buyers

1

Refer to the given data. If the firm is hiring workers under purely competitive conditions at a wage rate of $22, it will employ:

3 workers

Refer to the above diagram. If this labor market is monopsonistic, the wage rate and level of employment respectively will be:

A and F

Which of the following statements best illustrates the concept of derived demand

A decline in the demand for shoes will cause the demand for leather to decline.

which of the following statements is most consistent with the benefits-received principle of taxation

a childless couple should not be required to pay taxes for the support of public schools

Which of the following will not cause a shift in the demand for resource X?

a decline in the price of resource X

marginal revenue product measures the

amount by which the extra production of one more worker increases firms total revenue

compensating differences in wages

are wage differences that compensate for differences in the desirability of jobs

in the united states

both taxes and transfers decrease income inequality

countries engaged in international trade specialize in production based on:

comparative advantage

studies show that:

costs of trade barriers exceed their benefits creating an efficiency loss for society

Inclusive unionism is practiced mostly by:

professional and semi-professional employees

the market supply curve for labor is upsloping because

employees as a group must pay higher wage rates to obtain more workers

the market supply curve for labor is unsloping because

employers as a group must pay higher wages to obtain workers

each of the following contributes to growing income inequality in the unites states since 1975 except:

government transfers

singsong: 1F=2C Harmony: 1F=4C if these two nations specialize based on comparative advantage:

harmony will produce chicken and singsong will catch fish

the largest category of federal spending is for:

healthcare

Other things equal, the monopsonistic employer will pay a:

lower wage rate and hire fewer workers than will a purely competitive employer

wealth in the united states:

more unequally distributed than income

income mobility:

movement of individuals or households from one income quintile to another over time

a profit maximizing firm employs resources to the point where

mrp=mrc

which of the following is most likely to be an example of monopsony

the market for major league baseball umpires

the marginal tax rate is:

the percentage of an increment of income that is paid in taxes