Economics MCQs

A. Only revenue effects
B. Only protective effects
C. Both protective and revenue effects
D. Neither protective or revenue effects

A. Marginal tax rate
B. Average tax rate
C. Horizontal tax rate
D. Proportional tax rate

A. Marginal tax rates are high.
B. Higher income taxpayers pay more taxes than do lower income taxpayers.
C. Marginal tax rates are low.
D. Higher income taxpayers pay a greater percentage of their income in taxes than do lower income taxpayers.

A. Compound tariff
B. Effective tariff
C. Ad valorem tariff
D. Specific tariff

A. Will fall
B. Will rise
C. Will first rise and then fall
D. Will first fall and then rise

A. Doubles
B. Stays the same
C. Increase by a factor of four.
D. Could rise or fall

A. Caused a deadweight loss
B. Decreased equity
C. Generated no tax revenue
D. Increased efficiency

A. The deadweight has demonstrated
B. The ability-to-pay principle
C. The benefits principle
D. Horizontal equity

A. Minimizes the administrative burden form the tax
B. Does all the things describe in these answers
C. Raises revenue at the smallest possible cost to taxpayers.
D. Minimize the deadweight loss from the tax.

A. C + f
B. A
C. B
D. C