Question

Question 4 (1 point)

In some cities, when a road is repaved, the residents who live on that road are assessed a special property tax to help pay for the road improvements. This road improvement tax follows the

A) ability-to-pay principle.

B) benefits-received principle.

C) flat-rate taxation principle.

D) public-choice principle

Question 6

Jann has an income of $60,000 and pays $7,200 in taxes. When Jann's income rises to $70,000, her tax bill rises to $8,800. What is Jann's marginal tax rate?

A) 6.3 percent.

B) 12 percent.

C) 16 percent.

D) 20 percent.

Question 6 (1 point)

The social security payroll tax tends to be

A) flat-tax.

B) proportional.

C) progressive.

D) regressive.

Question 7 (1 point)

A basic principle underlying public choice theory is that

A) politicians seek to maximize the welfare of society.

B) voters seek to maximize the welfare of society.

C) politicians follow their own self-interest and seek to maximize their re-election chances.

D) voters recognize the importance of elections and choose to be relatively well informed about the issues.

Question 8 (1 point)

The majority-rule voting system

A) accurately captures the intensity of voter preferences.

B) sometimes accepts programs for which costs exceed benefits.

C) will lead to efficient choices if voters are well informed about the issues.

D) always leads to efficient choices.

Question 9 (1 point)

Voters may choose to remain uninformed about an issue because of

A) rational ignorance.

B) the shortsightedness effect.

C) the special-interest effect.

D) bureaucratic inefficiency.

Question 10 (1 point)

The political practice of trading votes of support for legislated programs is called

	A) benefit-cost analysis.
	B) the majority-rule problem.
	C) rational ignorance.
	D) logrolling.

Answer 1

Question 4

B

Benefit received principle. People who benefit the most from the use of the good should pay for it.

Question 6

C

16%

Additional tax is $8800-$7200= $1600

Additional income is $70000 - $60000=$10,000

Marginal tax rate = ($1600/$10000)*100= 16%

Question 6

Social security tax is regressive as there is a ceiling on income upto which the tax can be collected.

Question 7

C. Public choice theory deals with the peformance of the government when it replaces the private market.