10: Interest Rates, PDV, And Inequlaity

Question 1

Usury ceiling is above equil rate. What will happen?

Answer 1

The law will have no effect

Question 2

Usury is below equil rate. What will happen?

Answer 2

Shortage of credit

Question 3

An investment project will be more likely to be undertaken if

Answer 3

Project is completed rapidly so revenues can begin quickly

Question 4

The demand for credit is represented by a line that slopes downward as move left to right. This is because?

Answer 4

Some projects that would be approved at lower interest rates will not be approved at higher ones

Question 5

If everyone has the same income the gini ratio is

Answer 5

Zero

Question 6

The us income has become more unequal this means that the gini has

Answer 6

Increased

Question 7

The lorenz curve for country x is below country y this means?

Answer 7

The income is more equal in y thn x

Question 8

The distribution of income in the entire world is blank than in most contries

Answer 8

More unequal than

Question 9

The income in us is more blank than in other rich countries

Answer 9

More unequal than

Question 10

Graduation rates increase dramaticaly. This has done what to distribution of income?

Answer 10

More equally distributed

Question 11

The gini for lifetime income is blank for anual

Answer 11

Less than

Question 12

The gini for wealth is blank than annual

Answer 12

Greater than

Question 13

Demand for highly skilled workers increases more rapidly than supply. Labor earninds will

Answer 13

Become more unequal

Question 14

Everyone pays the same tax. This tax system is

Answer 14

Regressive

Question 15

Private good the market demand curve is adding individual demand

Answer 15

Horizontally

Question 16

Public good demand curve adding individual

Answer 16

Verticallg

Question 17

Elascitiy is for good x is larger than good y. Good x will raise and amount blank than good y

Answer 17

Less than

Question 18

Elasticity for good x is larger than good y. Excess burden from good x will be blank good y

Answer 18

More than

Question 19

Characteristic of pure public good

Answer 19

Nonrivalry and nonexclusivity

Question 20

Elasctity of labor is smaller than labor demand. Where will the burden of tax be?

Answer 20

On the workers

Question 21

Some couples have marriage penalty while others have marriage bonus. This is violation of

Answer 21

Horizontal equity

Question 22

Federal income tax is progressive because?

Answer 22

It has personal exemptions and it has graduated marginal tax rates

Question 23

Out of payroll tax and income tax which has lower compliance cost

Answer 23

the payroll tax

Question 24

The payroll tax is

Answer 24

Regressive

Question 25

The largest tax revenue loss in the us is the

Answer 25

Exclusion of employer paid health insurance

Question 26

Taxes on income could be borne by

Answer 26

Business owners, consumers, workers