Help help 1) market failure occur when? A) there is a change in quantity demanded B) externalities exist C) there is an increase in demand D) economic efficiency increase 2) which of the following leads to an under allocation of resources to specific economic activity? A) external benefits B) effluent benefits C) external costs D) marginal costs 3) when the cost spill over to third parties there is a(n) A) excessive competition B) government subsidy C) cost overrun D) negative externality 4) federal antitrust laws in the United States are intended to A) create only government owned monopolies B) increase corporate earnings C) promote competition by prohibiting monopolies D) create new monopolies 5) which of the following would be best classified as a private good? A) police force B) a missile defense system C) clothing D) radio frequency 6) which law specifically mandated the federal government's responsibility for economy wide stability? A) the Sherman act of 1890 B) the employment act of 1946 C) the miller act of 1960 D) the Great Depression act of 1930 7) the free rider problem is A) the incentive tht people have to avoid paying for a public good B) that people cannot be forced to accept public goods C) the use of private goods in one state by residents of another state D) the incentive that people have once they are receiving welfare to keep getting welfare 8) in the United States which of the following is an example of a government sponsored good? A) wireless networks B) community college education C) cigarettes D) marijuana 9) a difference between the market and public sector is that A) resources are only scarce for the market sector B) only the public sector produces private goods C) competition exists only in market sector D) decision making is by majority rule in the public sector but not in the market sector 11) suppose the tax rate on the first $10,000 of income is 0 percent ; 10 percent on the next $20,000 ; 20 percent on the next 20,000; 30 percent on the next 20,000; and 40 percent on income over $60,000. Family A has an income of $55,000 what is the tax liability of Family A? A) $3,400 B) $7,500 C) $6,600 D) $16,500 12) assume a family that earns $20,000 pays $1,500 in income taxes while a family that earns $40,000 pays $3,500 income taxes in this situation the income tax system is? A) progressive B) one of these but we cannot tell which one without more information C) proportional D) regressive 13) assume that Mr. Smiths income increased from $40,000 last year to 45,000 this year and that he paid an additional $2,000 in taxes. This would indicate that his marginal tax rate is? A) 25 percent B) 40 percent C) 30 percent D) 10 percent 14) some economists argue that corporate income taxes are typically not paid by firms but by? A) the government B) the board of directors of the firm C) stockholders, employees and consumers D) bond holders 15) responsibility of paying for social security benefits for currently retired individuals falls on? A) current and future workers B) no one since the government prints the money C) only working people over 50 years of age D) the retired people themselves 16) Ad valorem taxes A) are based on income levels B) are assessed as a percentage of a goods price C) are not used in the United States D) are applied only to imports 17) Dynamic tax analysis is based on the recognition that as tax rates are increased ? A) tax revenue collections will charge at the same rate as the tax rate B) tax revenue collections will continually increase C) tax revenue collections will eventually decline D) tax revenue collections will increase at a faster rate than the tax rate change 18) the value of goods , services, incomes or wealth subjects to taxation is A) a unit tax B) a sales tax C) the tax base D) the collected tax revenue 22) if the price of good A increases from $15 to $20 per unit and quantity demanded falls from 150 to 100 units then they bring the method of average values we can calculate the absolute price elasticity of demand to be? A) 2.6 B) 1.4 C) 2.4 D) 0.75 23) if the quantity demanded of a product is the same for each possible price, demand is ? A) unit elastic B) perfectly inelastic C) perfectly elastic D) elastic 24) when demand is inelastic ? A) quantity demanded is not very responsive to a change in price B) producers react quickly to price changes C) quantity demanded is very responsive to a change in price D) the proportional change in quantity demanded is equal to the proportional change in price 25) when the demand is elastic, a decrease is price will A) not change total revenue B) decrease total revenue C) reduce quantity demanded D) increase total revenue