Economics MCQs

Page No. 219

Tax incidence is the ?


astructure of the tax.

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bultimate distribution of a tax’s burden

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cbehaviour of shifting the tax to another party

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d measure of the impact the tax has on employment and output

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A progressive income tax means that those with a higher income pay ?


a a higher percentage of their income in taxes then low income people

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ba lower percentage of their income in taxes than low income people

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cthe same percentage of their income in taxes as low income people all the taxes in the economy.

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d all the taxes in the economy

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The marginal tax rate is ?


athe tax rate you pay on any additional income that you earn.

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bthe total amount of tax you pay divided by your total income

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cthe additional tax you pay divided by your total income

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d your total income divided by the total amount of tax you pay.

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Vertical equity holds that ?


athose will equal ability to pay should bear equal tax burdens.

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bthose who benefit the most from government service should bear the higher tax burden

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cthose with equal ability to pay should bear unequal burdens

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d those with greater ability to pay should pay more

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A Gini coefficient of zero means that the ?


athe income is split equally between the top 20% and the rest of the distribution

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b one person has all the income and every one else has nothing

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call the income is received by the top 20% of the income distribution

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d income is equally distributed

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Supply of land in a given use ?


awill be perfectly inelastic in the long run. but upward sloping in the short run

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b is perfectly inelastic since there is a fixed amount of land

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cis perfectly elastic since there is fixed amount of land

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dwill be upward sloping because as land becomes more valuable in once use, the amount of land made available for that use will increase

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The stock of knowledge, skills and talents that people possess is called ?


atraining investment

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b skill capital

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cskill-building investment

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dhuman capital

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View Answer human capital

Unemployment benefits may increase the unemployment rate because unemployment benefits ?


aencourage people to quit their jobs

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breduce the cost of job search

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cenable people to quit searching for work

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dreduce the benefits of additional job searching

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If output price is constant, the marginal revenue product of labour curve will have the same shape as the ?


atotal variable cost curve

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bmarginal cost curve

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c total product of labour curve

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dmarginal product of labour curve

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The marginal revenue product of labour is ?


athe marginal product of capital times the price of labour.

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bthe additional revenue a firm earns by employing on additional unit of labour

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cthe additional profit a firms earns by employing one additional unit of labour

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dthe additional revenue the firm makes by selling one unit of labour.

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