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ECO 450 Week 11 Final Exam Part 2

Question 1

Most empirical research indicates that the market supply curve of labor hours by prime-age males is:

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Question 2

The higher the compensated elasticity of supply of savings,

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Question 3

If the return to savings, r, is subject to taxation at rate t, then in equilibrium a saver’s marginal rate of time preference will equal:

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Question 4

The Haig-Simons definition of income:

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Question 5

Comprehensive income:

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Question 6

Which of the following is the result of The Economic Growth and Tax Relief Reconciliation Act enacted in 2001?

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Question 7

The reduction in marginal tax rates will:

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Question 8

Which of the following is true for the federal income tax in the United States?

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Question 9

The excess burden of tax preferences:

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Question 10

Tax expenditures are:

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Question 11

Accelerated depreciation allows corporations to:

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Question 12

In the long run a corporate income tax that initially reduces the return to investment in the corpo­rate sector will also:

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Question 13

If corporations maximize profits, the short-run incidence of a tax on its profits will be borne by:

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Question 14

If an all-equity firm has after-tax income of $100,000 based on a 34% income tax, what is the after-tax income of an equivalent firm that pays $15,000 in interest that is tax deductible?

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Question 15

If the supply of savings is not perfectly elastic, the corporate income tax is likely to:

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Question 16

Assuming that a person never receives any cash gifts or bequests, a tax on comprehensive con­sumption is equivalent to a(n):

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Question 17

In most states, the retail sales tax can be regarded as equivalent to a:

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Question 18

Consumption-in-kind:

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Question 19

A consumption-type, value-added tax:

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Question 20

The differential incidence of substituting a tax on comprehensive consumption for a tax on compre­hensive income is likely to be:

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Question 21

If a tax on real estate results in a decrease in the supply of housing, the tax will be:

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Question 22

A comprehensive wealth tax will:

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Question 23

If the annual amount of savings is $10 billion, what is the effect of a wealth tax assuming supply is responsive?

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Question 24

If the annual amount of savings is $10 billion, what is the effect of a wealth tax assuming supply is perfectly inelastic?

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Question 25

A comprehensive wealth tax base includes:

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Question 26

What is generally the best measure of fiscal capacity for local governments?

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Question 27

In general, local tax bases tend to be:

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Question 28

Under a federal system of government,

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Question 29

A federal highway grant will provide funds for roads supplied by state and local governments if these governments pay 50 percent of the cost of the roads. This grant is an example of:

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Question 30

A grant received by a local government will:

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