Government Homework

Which of the following is the largest source of revenue for state​ governments? A. Miscellaneous taxes and​ fees, such as tolls on roads and public transportation tickets. Your answer is correct. B. Sales tax. C. Individual​ (federal) income tax. D. Property tax.

A

In an​ economy, if the government implements a law for individuals that requires them to save at least​ 25% of their annual income in a social savings plan framed by the government. For supporting this​ plan, the government raises revenues by implementing income tax rates that are higher compared to the other countries. Which of the following will be a​ result(s) of this​ scenario? ​(Check all that apply.​) A. An increase in the deadweight losses. Your answer is correct. B. An increase in immigration of​ high-income innovators. C. An increase in costs to the government. Your answer is correct. D. It strengthens the view of consumer sovereignty.

A, C

The two most important goals for government policy involve a​ trade-off between​ __________ and​ __________. Part 2 A. direct​ regulation; indirect regulation. B. ​equity; efficiency. Your answer is correct. C. big​ government; small government. D. ​taxation; government spending.

B

Given that there are costs involved with government intervention in an​ economy, governments still choose to intervene in markets to​ ____________. Part 4 A. increase bureaucracy. B. implement taxation. C. reduce inequality. Your answer is correct. D. decrease debt. E. generate black markets.

C

Do you think from 1747-1757 the number of new homes with 9 or fewer windows increased from the​ pre-1747 days? Part 7 A. ​Yes, because the marginal cost of having more windows became proportional. B. ​No, because the marginal cost of having more windows remained unchanged. C. ​Yes, because the marginal cost of having more windows decreased. D. ​Yes, because the marginal cost of having more windows increased.

D

Which of the following functions is beyond the scope of economics as far as government intervention is​ considered? A. To help in improving the design of policies. B. To understand what sorts of activities require intervention. C. To weigh the costs and benefits of specific interventions. D. To make a value judgment on whether government is good or bad.

D

Which of the following is not a factor that influences government taxation and spending​ decisions? A. Correcting market failures and externalities B. Redistributing funds via transfer payments C. Raising revenues D. Correcting​ post-tax income distribution

D

The largest source of revenue for the federal government is​ ___________. A. payroll taxes. B. corporate income taxes. C. property taxes. D. individual income taxes. The sources of revenue for state and local governments are (different from, same as) those of the federal government.

D, different from

________ represent the largest portion of the money the U.S. government collects in tax revenues. _________ tax receipts represent a third of the federal​government's tax revenue and are taxes on _______ .

Individual income taxes, Social insurance, Wages

If government tax revenues are ​$6.8 trillion and government spending is ​$5.7 ​trillion, the government is running a ________ .

budget surplus

Black markets often _____ the ban on illegal goods and services. Another facet of underground​ economies, tax​ evasion, ____ legitimate businesses and can result in governments levying ______ taxes.

undermine, harms, higher

Government spending in the United States has grown over time and now accounts for more than 40 percent of U.S. national income. Does this mean that government has been consistently running a budget​ deficit? Part 2 A. ​No, government deficits depend upon spending and tax revenue. B. ​Yes, as government investment spending has​ increased, deficits have become inevitable. C. ​No, government deficits also depend on the national debt. D. ​Yes, government deficits are a direct result of government spending over time.

A

In an​ economy, there is a high level of social inequality. This causes the government to implement a wealth tax on its citizens who earn a high level of income​ and, therefore, are capable of holding assets. Which of the following is not a result of the implementation of the wealth​ tax? A. The increase in consumer surplus and decrease in social inequality. Your answer is correct. B. The introduction of deadweight loss. C. Distortion of decisions of individuals that affects efficiency. D. A conflict between equity and efficiency.

A

Which of the following arguments is not consistent with​ paternalism? A. Individuals make choices that reflect their true preferences and know what is best for them. Your answer is correct. B. Individuals may find it difficult to evaluate certain choices. C. The government should encourage or induce individuals to change their actions. D. Individuals may suffer from decision errors.

A

Which of the following is a factor underlying government taxation and spending​ decisions? A. To raise revenues to pay for operations. B. To accumulate debt in order to pay for public goods. C. To create externalities. D. To prevent wealth redistribution.

A

FDA regulations aimed at ensuring that new drugs that are marketed​ do, in​ fact, have the functions they are supposed to have are necessary​ because: A. verification is an easy task within a market economy. B. verification by each consumer would be extremely inefficient. Your answer is correct. C. quantity regulations are so efficient. D. quantity regulations are so rare within a market economy.

B

Which of the following is a cost associated with government intervention in an economic​ system? Part 2 A. Inequality. B. Bureaucracies. Your answer is correct. C. Unemployment. D. Externalities.

B

Examples of direct regulation include​ ____________. A. taxes. B. fishing quotas. Your answer is correct. C. price floors. Your answer is correct. D. subsidies. E. laws restricting alcohol purchases.

B,C,E

Britain taxed windows from 1696 until 1851. Under the 1747-1757 tax​ rates, you would pay no tax if your home had 0-9 ​windows, but if your home had 10-14 windows you would pay a tax of 6 pence per window for every window in your home. Part 2 The window tax is similar to the U.S. income tax in that both are​ ___________. Part 3 A. proportional taxes. B. sales taxes. C. progressive taxes. Your answer is correct. D. regressive taxes.

C

Direct regulation is​ ____________. Part 2 A. using the tax system to influence behavior. B. consumer sovereignty in a competitive market. C. direct actions by the government to control the amount of an activity. Your answer is correct. D. the government determining the incidence of a tax.

C

The window tax is different from the U.S. income tax in that as windows​ increase, ____________. Part 5 A. ​Britain's window tax rate​ increases, and as income​ increases, the U.S. income tax rate decreases. B. ​Britain's window tax becomes​ progressive, and as income​ increases, the U.S. income tax becomes proportional. C. ​Britain's window tax increases for all​ windows, and as income​ increases, the U.S. income tax rate increases on marginal income. Your answer is correct. D. only​ Britain's marginal window tax rate​ increases, and as income​ increases, only the U.S. average income tax rate increases.

C

Which of the following is an example of the opportunity cost of government​ bureaucracies? A. An​ ex-math teacher who writes text books B. A retired computer engineer who volunteers to mentor teenagers C. A tax collector who was qualified to produce motherboards Your answer is correct. D. A former OSHA representative who works for a chemical company

C

In an economy with an​ equity-efficiency trade-off, the newly elected government implements proportional taxes and plans to have a lesser hold on consumer choice. This will lead to _______ in efficiency and ________ in social inequality compared to the existing level of social inequality in the economy.

an increase, an increase