财政学-罗森-第6版chap014.doc

CHAPTER 14 - Efficient and Equitable Taxation
Multiple-Choice Questions
1. A natural monopoly has
a) many producers of the same product.
b) easy access to the market.
c) a single firm providing the industry’s output.
d) one buyer of output.
e) none of the above.
2. Horizontal equity incorporates the notion that
a) those earning higher es should pay more in taxes.
b) those earning equal es should pay the same in taxes.
c) taxes paid should be unassociated with e levels.
d) there should be no excess burden created by a tax.
3. Tax evasion is
a) an illegal act.
b) prevalent in the United States.
c) failing to pay legally due taxes.
d) all of the above.
e) none of the above.
4. The Ramsey Rule implies that goods be __________ in consumption.
a) unrelated
b) equal
c) opposite
d) moderate
5. Tax avoidance is
a) illegal in the United States.
b) changing your behavior so as to reduce your tax liability.
c) the same as tax evasion.
d) a minor source of concern in the United States.
6. When the minimum marginal penalty for tax evasion is greater than the maximum marginal tax rate, theory suggests that tax evasion will be
a) greater than 1.
b) ¥.
c) 0.
d) 100.
7. Vertical equity incorporates the notion that
a) those earning higher es should pay more in taxes.
b) those earning equal es should pay the same in taxes.
c) taxes paid should be unassociated with e levels.
d) there should be no excess burden created by a tax.
8. Average cost pricing is found
a) when supply equals demand.
b) when AC = MR.
c) when P = 0.
d) where AC = AR.
e) when MR > 0.
9. “For goods that are unrelated in consumption, efficiency requires that tax rates be inversely proportional to elasticities.” This is the definition of
a) the benefits-received principle.
b) the Ramsey Rule.
c) the second best principle.
d) the inverse elasticity rule.
e) horizontal equity.
10. Deciding to engage in tax evasion requires consideration of all of the following, except th