財(cái)政學(xué)英文測(cè)試題：TBChap016

1、Chapter 16Efficient and Equitable Taxation Multiple Choice Questions 1.A natural monopoly has  A. many producers of the same product.B. easy access to the market.C. a single firm providing the industry's output.D. one buyer of output. 2.Horizontal equ

2、ity incorporates the notion that  A. those earning higher incomes should pay more in taxes.B. those earning equal incomes should pay the same in taxes.C. taxes paid should be unassociated with income levels.D. there should be no excess burden created by a tax. 3.Ta

3、x evasion is  A. an illegal act.B. prevalent in the United States.C. failing to pay legally due taxes.D. all of these answer options are correct. 4.The Ramsey Rule implies that goods be _ in consumption.  A. unrelatedB. equalC. oppositeD.&#

4、160;moderate 5.Tax avoidance is  A. illegal in the United States.B. changing your behavior so as to reduce your tax liability.C. the same as tax evasion.D. a minor source of concern in the United States. 6.When the minimum marginal penalty for tax evasion is g

5、reater than the maximum marginal tax rate, theory suggests that tax evasion will be  A. greater than 1.B. .C. 0.D. 100. 7.Vertical equity incorporates the notion that  A. those earning higher incomes should pay more in taxes.B. those earning equ

6、al incomes should pay the same in taxes.C. taxes paid should be unassociated with income levels.D. there should be no excess burden created by a tax. 8.Average cost pricing is found  A. when supply equals demand.B. when AC = MR.C. when P = 0.D. where AC =

7、 AR. 9."For goods that are unrelated in consumption, efficiency requires that tax rates be inversely proportional to elasticities." This is the definition of  A. the benefits-received principle.B. the Ramsey Rule.C. the second best principle.D. the invers

8、e elasticity rule. 10.Deciding to engage in tax evasion requires consideration of all of the following, except the  A. probability of being caught.B. probability of conviction if caught.C. probability of winning extra money.D. costs of defending oneself. 11.A

9、linear income tax schedule is known as  A. a flat income tax.B. a regressive tax.C. a Haig-Simons tax.D. a user fee. 12.Optimal commodity taxation would  A. put a tax on leisure time, which is currently untaxed.B. have the smallest amount of exc

10、ess burden possible for a given amount of tax revenue.C. optimize tax rates on the wealthiest Americans.D. eliminate tax evasion in the United States. 13.Refer to Figure 16.3 below. When the MCz line crosses the Dz line, profits for the firm are    A. 0.B.

11、0;greater than 1.C. less than 0.D. . 14.A situation in which the government cannot implement an optimal tax policy because the policy is inconsistent with the government's incentives over time is known as  A. government tax problem.B. time inconsistency of opti

12、mal policy.C. the double-counting game.D. Wagner's Law. 15.A time endowment is  A. the number of hours in a day.B. a gift of time that a person receives.C. the maximum number of hours in a year that a person can work.D. the largest amount of time that

13、 can be spent at leisure.E. all of these answer options are correct. 16.The idea of two individuals being equally well off in the absence and existence of taxation is  A. time consistency of optimal taxation.B. flat tax income schedule.C. benefits received principl

14、e.D. utility definition of horizontal equity. 17.Neutral taxation is taxing different commodities at the same tax rate.  A. TrueB. FalseC. Uncertain 18.Choosing optimal user fees for government produced services is similar to choosing optimal taxes.  

15、;A. TrueB. FalseC. Uncertain 19.Natural monopolies have U-shaped cost curves.  A. TrueB. FalseC. Uncertain 20.Tax evasion is more likely to occur when people feel that their tax dollars are not being used properly.  A. TrueB. Fals

16、eC. Uncertain 21.Income is a poor measure of relative position when attempting to determine horizontal equity.  A. TrueB. FalseC. Uncertain 22.People who are risk neutral are more likely to engage in tax evasion than people who are risk loving.  A.&#

17、160;TrueB. FalseC. Uncertain 23.Optimal user fees are paid only by the consumers of the good or service produced.  A. TrueB. FalseC. Uncertain 24.If a tax is efficient, it will necessarily be equitable.  A. TrueB. FalseC. Uncertai

18、n 25.Changing tax regimes can sometimes be difficult and lead to inequities.  A. TrueB. FalseC. Uncertain 26.Working fewer hours to reduce your tax burden is tax evasion.  A. TrueB. FalseC. Uncertain 27.It is easier to under-report inc

19、ome in industries that deal with a lot of cash.  A. TrueB. FalseC. Uncertain 28.Natural monopolies occur when a single or a few firms can take advantage of economies of scale and supply the entire industry output.  A. TrueB. FalseC. Uncertain

20、60; Essay Questions 29.Consider a monopolist that has a total cost curve of TC = 110Q - (0.25)Q2. The market demand equation is Qd = 155 - P.(A) What are the total revenue, marginal revenue, marginal cost, equilibrium quantity, equilibrium price, and profits for the monopolist in this mark

21、et?(B) Suppose the government instructs the firm to produce using average cost pricing. What are the equilibrium quantity, equilibrium price, and profits?(C) Suppose further that the government wants the firm to produce where supply equals demand. What will be the equilibrium quantity, equilibrium p

22、rice, and profits?      30.Refer to Figure 16.1 below. Assume that the equation of Dx is P = 50 - 2Qd.  (A) If the original price of the good was $10 and a $4 tax was imposed, what is the tax income? What is the excess burden?(B) How much marginal excess burde

23、n will be created if an additional dollar of tax is levied?(C) How much additional tax is collected?      31.Refer to the figure below. If the equation of MC of unreported income is MC = 4 + 2X, and the MB of unreported income is MB = 44 - 3X, what will be the amount of

24、 unreported income? How much of a change will there be if enforcement becomes more strict, resulting in MC = 9 + 2X?        32.Suppose the demand for good X can be represented by the following equation: Xd = 22 - (1/4)P. Furthermore, suppose that the demand fo

25、r good Y can be represented by Yd = 50 - P.(A) Find the elasticity of demand for both good X and good Y when the price is $10.(B) Suppose that an ad valorem tax is placed on both goods. Good Y is taxed at a rate of 5%. To ensure that the inverse elasticity rule holds, what must be the rate at which

26、good X is taxed?Reminder: Elasticity at a given price is found using the formula = -(1/S)(P/X), where S is the slope of the demand curve, X is the quantity demanded, and P is the price.      33.Refer to Figure 16.5 below. If the marginal cost of underreporting can be wr

27、itten as MC = X2 + 0.4.  (A) What is the maximum marginal tax level (t) possible that will ensure tax evasion is zero?(B) If the Marginal Tax rate is equal to 0.56, how much income will be evaded?      34.Ms. Mahmood is a retired schoolteacher whose pension in

28、come is $25,000 per year. She also receives Social Security income of $5,000 per year. Mr. Little is a young man who does not choose to work. He inherited $600,000 from his Aunt Clara, which he invested in a bond fund that provides a 5 percent return, generating $30,000 income per year. If we are co

29、ncerned about the equity of taxation, should we consider these two people as equals and tax them equally? Explain why or why not.      35.In 2009, President Obama proposed raising the income tax on those making over $250,000 per year. Discuss the merits of this plan.

30、60;     36.One of the conditions mentioned in our formulation of the Ramsey Rule is that goods be unrelated in consumption. Do you think this is a reasonable assumption? If this condition does not hold, will the Ramsey Rule still work?      Chap

31、ter 16 Efficient and Equitable Taxation Answer Key Multiple Choice Questions 1.A natural monopoly has  A. many producers of the same product.B. easy access to the market.C. a single firm providing the industry's output.D. one buyer of output. AACSB: R

32、eflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Optimal User Fees 2.Horizontal equity incorporates the notion that  A. those earning higher incomes should pay more in taxes.B. those earning equal incomes should pay the same in tax

33、es.C. taxes paid should be unassociated with income levels.D. there should be no excess burden created by a tax. AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Other Criteria for Tax Design 3.Tax evasion is  A. 

34、an illegal act.B. prevalent in the United States.C. failing to pay legally due taxes.D. all of these answer options are correct. AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Other Criteria for Tax Design 4.The Ramsey Ru

35、le implies that goods be _ in consumption.  A. unrelatedB. equalC. oppositeD. moderate AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Optimal Commodity Taxation 5.Tax avoidance is  A. illegal

36、 in the United States.B. changing your behavior so as to reduce your tax liability.C. the same as tax evasion.D. a minor source of concern in the United States. AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Other Criteria for

37、 Tax Design 6.When the minimum marginal penalty for tax evasion is greater than the maximum marginal tax rate, theory suggests that tax evasion will be  A. greater than 1.B. .C. 0.D. 100. AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: Unde

38、rstandDifficulty: 2 MediumTopic: Other Criteria for Tax Design 7.Vertical equity incorporates the notion that  A. those earning higher incomes should pay more in taxes.B. those earning equal incomes should pay the same in taxes.C. taxes paid should be unassociated with

39、income levels.D. there should be no excess burden created by a tax. AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Optimal Commodity Taxation 8.Average cost pricing is found  A. when supply equals demand.B. when

40、 AC = MR.C. when P = 0.D. where AC = AR. AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Optimal User Fees 9."For goods that are unrelated in consumption, efficiency requires that tax rates be inversely proportional to ela

41、sticities." This is the definition of  A. the benefits-received principle.B. the Ramsey Rule.C. the second best principle.D. the inverse elasticity rule. AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Optim

42、al Commodity Taxation 10.Deciding to engage in tax evasion requires consideration of all of the following, except the  A. probability of being caught.B. probability of conviction if caught.C. probability of winning extra money.D. costs of defending oneself. AA

43、CSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: UnderstandDifficulty: 2 MediumTopic: Other Criteria for Tax Design 11.A linear income tax schedule is known as  A. a flat income tax.B. a regressive tax.C. a Haig-Simons tax.D. a user fee. AACSB

44、: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Optimal Income Taxation 12.Optimal commodity taxation would  A. put a tax on leisure time, which is currently untaxed.B. have the smallest amount of excess burden possible for a g

45、iven amount of tax revenue.C. optimize tax rates on the wealthiest Americans.D. eliminate tax evasion in the United States. AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Optimal Commodity Taxation 13.Refer to Figure 16.3 belo

46、w. When the MCz line crosses the Dz line, profits for the firm are    A. 0.B. greater than 1.C. less than 0.D. . AACSB: Reflective ThinkingBlooms: UnderstandDifficulty: 2 MediumTopic: Optimal User Fees 14.A situation in which the government cannot im

47、plement an optimal tax policy because the policy is inconsistent with the government's incentives over time is known as  A. government tax problem.B. time inconsistency of optimal policy.C. the double-counting game.D. Wagner's Law. AACSB: Reflective Thinkin

48、gAccessibility: Keyboard NavigationBlooms: UnderstandDifficulty: 2 MediumTopic: Politics and the Time Inconsistency Problem 15.A time endowment is  A. the number of hours in a day.B. a gift of time that a person receives.C. the maximum number of hours in a year that a p

49、erson can work.D. the largest amount of time that can be spent at leisure.E. all of these answer options are correct. AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Optimal Commodity Taxation 16.The idea of two individuals bei

50、ng equally well off in the absence and existence of taxation is  A. time consistency of optimal taxation.B. flat tax income schedule.C. benefits received principle.D. utility definition of horizontal equity. AACSB: Reflective ThinkingAccessibility: Keyboard Navigat

51、ionBlooms: RememberDifficulty: 1 EasyTopic: Other Criteria for Tax Design 17.Neutral taxation is taxing different commodities at the same tax rate.  A. TrueB. FalseC. Uncertain AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty:

52、1 EasyTopic: Optimal Commodity Taxation 18.Choosing optimal user fees for government produced services is similar to choosing optimal taxes.  A. TrueB. FalseC. Uncertain AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyT

53、opic: Optimal User Fees 19.Natural monopolies have U-shaped cost curves.  A. TrueB. FalseC. Uncertain AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Optimal User Fees 20.Tax evasion is more likely to occur

54、when people feel that their tax dollars are not being used properly.  A. TrueB. FalseC. Uncertain AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Other Criteria for Tax Design 21.Income is a poor measure of relat

55、ive position when attempting to determine horizontal equity.  A. TrueB. FalseC. Uncertain AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Other Criteria for Tax Design 22.People who are risk neutral are more like

56、ly to engage in tax evasion than people who are risk loving.  A. TrueB. FalseC. Uncertain AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Other Criteria for Tax Design 23.Optimal user fees are paid only by the co

57、nsumers of the good or service produced.  A. TrueB. FalseC. Uncertain AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Optimal User Fees 24.If a tax is efficient, it will necessarily be equitable.  A.

58、60;TrueB. FalseC. Uncertain AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: UnderstandDifficulty: 2 MediumTopic: Optimal Commodity Taxation 25.Changing tax regimes can sometimes be difficult and lead to inequities.  A. TrueB. FalseC. U

59、ncertain AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Other Criteria for Tax Design 26.Working fewer hours to reduce your tax burden is tax evasion.  A. TrueB. FalseC. Uncertain AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Other Criteria for Tax Design 27.It is easier to under-report income in industries that deal with a lot of cash.  A. TrueB. FalseC. Uncertain AA