FREE AND STUDY GAMES ABOUT ECON T4 EXAM

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FREE AND STUDY GAMES ABOUT ECON T4 EXAM

QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

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-Guarantee passing score -99 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: The efficiency loss of a tax is

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the net value of sacrificed output caused by the tax.

Question 2: The economist who advocated a single tax on land was

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Henry George.Question 3: Suppose the members of population A, consisting of Al, Bob, Curt, Doris, and Ellie, receive annual incomes of $4,000, $3,200, $2,400, $1,600, and $800, respectively. What percentage of total income is received by the highest quintile?

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33.3 Question 4: Suppose an employer is biased against African Americans. If his discrimination coefficient is $5, the employer will

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hire only whites if the actual African-American-white wage differential is less than $5.

Question 5: One cause of income inequality in the United States is

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differences in preferences for market work relative to nonmarket activities as well as differences in preferences for types of work.Question 6: If the wage rate is $12 and Manfred's only fixed input is capital, the total cost of which is $25, then what will be his economic profit?

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113 Question 7: A farmer who has fix is 24 for the first worker hired, 32 when two workers are hired, 37 when tred, and 40 when four are hired. The farmer's product sells for $5 per unit, and the wage rate is $13 per worker. What is the farmer's profit-maximizing output?

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40

Question 8: Other things equal, the interest rate on a loan will be smaller,

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if the loan interest is exempt from taxation.

Question 9: The "time-value of money" refers to the fact that

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a given amount of money is more valuable the sooner it is obtained.

Question 10: The benefits-received principle of taxation is most evident in

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excise taxes on gasoline.Question 11: Which of the following is equivalent to the costs that firms incur in acquiring economic resources?

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income of the resources

Question 12: Revenues flowing to the government from government-run or

government-sponsored businesses, such as public utilities and state lotteries, are known as

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proprietary income.Question 13: The demand for a productive resource is said to be "derived" because the demand for the factor

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depends on the demand for the product it helps to produce.Question 14: In a monopsonistic labor market, the employer will maximize profits by employing workers up to that point at which

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marginal revenue product equals marginal resource (labor) cost.Question 15: If the price level falls by 1 percent in a year and nominal wages decrease by 4 percent, then real wages will

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decrease by 3 percent.Question 16: Holding revenues constant, cost minimization by firms is equivalent to

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profit maximization.Question 17: If discrimination based on gender and race was eliminated, we would expect the

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personal distribution of income to become more equal.Question 18: If the interest rate is 12 percent, what is the future value of $8,000 three years from now?

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$11,239

Question 19: The tax rates embodied in the federal personal income tax are such that

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the marginal tax rate is higher than the average tax rate, causing the average tax rate to rise as income rises.Question 20: Refer to the personal income tax schedule given in the table. If your taxable income is $10,000, your average tax rate is

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30 percent; your marginal rate on the last $2,000 is 50 percent.

Question 21: Proprietary income refers to

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revenue generated by government-run businesses.Question 22: If the nominal wages of carpenters rose by 4 percent in 2019 and the price level increased by 1 percent, then the real wages of carpenters

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increased by 3 percent.

Question 23: The consumer price index is 113 in Year 1 and 118 in Year

• The nominal wage rate is $8 in Year 1 and $9 in Year
• What is the approximate percentage change in the real wage rate from Year 1 to Year 2?

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8.1 percent Question 24: The three most important sources of federal tax revenue in order of descending importance are

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personal income, payroll, and corporate income taxes.Question 25: The general rule for hiring any input (say, labor) in the profit-maximizing amount is MRC = MRP. This rule takes the special form W = MRP (where W is the wage rate) when the

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firm is hiring labor under purely competitive conditions.