Average & Total Cost, Application of Economics & Income Inequality Mcqs - Set 7

1)   A tax whose burden is the same proportion of income for all households is ?

a. an equal tax
b. a proportional tax
c. a progressive tax
d. a regressive tax
Answer  Explanation 

ANSWER: a proportional tax

Explanation:
No explanation is available for this question!


2)   The total amount of tax you pay divided by your total income is the ?

a. average tax rate
b. marginal tax rate
c. proportional tax rate
d. total tax rate
Answer  Explanation 

ANSWER: total tax rate

Explanation:
No explanation is available for this question!


3)   Horizontal equity holds that ?

a. those with equal ability to pay should bear unequal tax burdends.
b. those who benefits the most from government services should bear the higher tax burden.
c. those who benefit the most from government services should have the greatest voice in determining what gets produced
d. those with equal ability to pay should bear equal tax burdens.
Answer  Explanation 

ANSWER: those with equal ability to pay should bear equal tax burdens.

Explanation:
No explanation is available for this question!


4)   A Gini coefficient of one means that ?

a. all the income is received by the top 20% of the income distribution
b. income is distributed equally
c. the income is split equally between the top 20% and the rest of the distribution.
d. one family has all the income and every one else has nothing.
Answer  Explanation 

ANSWER: one family has all the income and every one else has nothing.

Explanation:
No explanation is available for this question!


5)   The Gini coefficient is ?

a. the ratio of the percentage of total income received by the top 20% of families to the percentage of total income received by by the bottom 20% of fam
b. the most common way of representing the income distribution graphically
c. a commonly used measure of the degree of inequality in an income distribution
d. a commonly used measure of the degree of inequity in an income distribution
Answer  Explanation 

ANSWER: the ratio of the percentage of total income received by the top 20% of families to the percentage of total income received by by the bottom 20% of fam

Explanation:
No explanation is available for this question!


6)   The term ‘rent’ as it is used by economists. refers to ?

a. the return to any factor of production that is in fixed supply
b. the profit earned by the owner of any housing unit.
c. the amount paid each year by a tenant for an apartment
d. any profit earned by stockholders when they sell their stock
Answer  Explanation 

ANSWER: the return to any factor of production that is in fixed supply

Explanation:
No explanation is available for this question!


7)   If labour market discrimination crowds women into a limited number of occupations so that the number of occupations available to men increases, then ?

a. wages of men will be higher but the marginal productivity of men will be lower than it otherwise would be
b. the wages of men will be lower but the marginal productivity of men will be higher than it otherwise would be
c. both the wages and the marginal productivity of men will be lower than they otherwise would be
d. both the wages and the marginal productivity of men will be higher than they otherwise would be
Answer  Explanation 

ANSWER: both the wages and the marginal productivity of men will be higher than they otherwise would be

Explanation:
No explanation is available for this question!


8)   An unemployed salesperson has been offered a job paying Rs500 a week. He turns that job down and continues to search for another job that pays more. The cost of this continued search is ?

a. the Rs500 weekly salary that he has forgone to search for another job
b. The Rs500 weekly salary that he has forgone and the monetary costs incurred by continuing to search
c. Rs difference between the weekly salary he finally accepts and the Rs500 weekly salary that he has forgone
d. Rs0, since he is currently unemployed
Answer  Explanation 

ANSWER: The Rs500 weekly salary that he has forgone and the monetary costs incurred by continuing to search

Explanation:
No explanation is available for this question!


9)   The formula for the marginal revenue product of labour (L is for labour, X is the product) is ?

a. MPL + PX
b. (MPL) (PX)
c. PX/MPL
d. MPL/PX
Answer  Explanation 

ANSWER: PX/MPL

Explanation:
No explanation is available for this question!


10)   In a competitive labour market firms will hire labour up to the point where the marginal revenue product of labour equals ?

a. total labour cost
b. the marginal product
c. the price of the product
d. the wage rate
Answer  Explanation 

ANSWER: the marginal product

Explanation:
No explanation is available for this question!