- Income tax would fall under which of the following categories?
A. Progressive tax
B. Regressive tax
C. Proportional tax
D. Sales tax
E. Both B and D - Which of the following is true regarding the Lorenz curve?
A. It measures real GDP.
B. It illustrates the relationship between inflation and unemployment.
C. It measures the relationship between unemployment and GDP.
D. It measures the quality of life for members of society.
E. It measures the relationship between real GDP and population. - Which of the following would be considered a transfer payment?
A. A payment to a federal employee
B. A payment to a babysitter
C. A payment to the Federal Reserve
D. Unemployment compensation
E. Taxation - Which of the following best describes the 45-degree line in the Lorenz curve?
A. A point of inequality
B. A point of equality
C. The relationship between inflation and unemployment
D. The line that represents the total number of poor people in the United States
E. The line that illustrates the number of unemployed people
10. What does the term nonexclusionaryrefer to?
A. Private goods
B. Public goods
C. Government-owned goods
D. Goods owned by the city government
E. The right to prevent someone from using a good- How can the government improve income distribution?
A. By increasing taxes
B. By increasing subsidies for education
C. By decreasing subsidies
D. By decreasing transfer payments
E. None of the above
12. Which one of the following is true regarding spillover costs?
A. They shift the burden of cost from the firm to society.
B. They shift the burden of cost from society to the firm.
C. They are positive externalities.
D. They are a result of a balanced market.
E. They are present in every market transaction.Part III: Microeconomics