TEST BANK
Microeconomics, 9th Edition by
R. Glenn Hubbard
Complete Chapter Test Bank
are included (Ch 1 to 17)
** Immediate Download
** Swift Response
** All Chapters included
,Table of Contents are given below
1.Economics: Foundations and Models
2.Trade-offs, Comparative Advantage, and the Market System
3.Where Prices Come From: The Interaction of Demand and Supply
4.Economic Efficiency, Government Price Setting, and Taxes
5.Externalities, Environmental Policy, and Public Goods
6.Elasticity: The Responsiveness of Demand and Supply
7.The Economics of Health Care
8.Firms, the Stock Market, and Corporate Governance
9.Comparative Advantage and the Gains from International Trade
10.Consumer Choice and Behavioral Economics
11.Technology, Production, and Costs
12.Firms in Perfectly Competitive Markets
13.Monopolistic Competition: The Competitive Model in a More
Realistic Setting
14.Oligopoly: Firms in Less Competitive Markets
15.Monopoly and Antitrust Policy
16.The Markets for Labor and Other Factors of Production
17.Public Choice, Taxes, and the Distribution of Income
,The test bank is organized in reverse order, with the last chapter displayed first, to ensure that all
chapters are included in this document. (Complete Chapters included Ch17-1)
Microeconomics, 9e (Hubbard)
Chapter 17 Public Choice, Taxes, and the Distribution of Income
17.1 Public Choice
1) Two aspects of taxes that are often the focus of economists and policymakers are ________ and
________.
A) taxes reduce the efficiency of the economy; taxes affect the distribution of income
B) taxes affect the distribution of income; taxes should always be levied on the wealthy
C) taxes increase the efficiency of the economy; taxes should be eliminated for those living below the
poverty line
D) the wealthy pay too much in taxes; taxes decrease income inequality
Answer: A
Diff: 2
Topic: Income Taxes
Learning Outcome: Micro-24: Explain the basic principles of tax policies and the tax system
AACSB: Analytical thinking
Special Feature: Chapter Opener: The Continuing Political Debate Over Taxes
2) An ideal tax would reduce economic efficiency ________ and would ________ income inequality.
A) the most; increase
B) the most; decrease
C) the least; increase
D) the least; decrease
Answer: D
Diff: 1
Topic: Income Taxes
Learning Outcome: Micro-24: Explain the basic principles of tax policies and the tax system
AACSB: Analytical thinking
Special Feature: Chapter Opener: The Continuing Political Debate Over Taxes
3) Employees ________ income tax on their wages and salaries, and ________ income tax on the amount
employers spend providing them with health insurance.
A) do not pay; do not pay
B) pay; pay
C) pay; do not pay
D) do not pay; pay
Answer: C
Diff: 1
Topic: Income Taxes
Learning Outcome: Micro-24: Explain the basic principles of tax policies and the tax system
AACSB: Analytical thinking
Special Feature: Economics in Your Life & Career: Which Is Better: A $1,000 Raise or $1,000 toward
Health Insurance?
1
, 4) According to public choice theory, policymakers
A) place the interests of the public above their own self-interest.
B) are likely to pursue their own self-interest, even if their self-interest conflicts with the public interest.
C) act in ways to maximize economic efficiency.
D) act in ways to bring about an equitable distribution of society's wealth.
Answer: B
Diff: 1
Topic: Public Choice
*: Recurring
Learning Outcome: Micro-19: Explain the concept of efficiency in the economy and obstacles to
achieving it
AACSB: Analytical thinking
5) The public choice model
A) examines the degree of market power that the public exerts in a market economy.
B) examines the public's role in appointing politicians and ensuring that elected officials act in ways to
reflect the public's preferences.
C) applies economic analysis to government decision making.
D) applies economic analysis to the collective decision making of consumers.
Answer: C
Diff: 1
Topic: Public Choice
*: Recurring
Learning Outcome: Micro-19: Explain the concept of efficiency in the economy and obstacles to
achieving it
AACSB: Analytical thinking
2
Microeconomics, 9th Edition by
R. Glenn Hubbard
Complete Chapter Test Bank
are included (Ch 1 to 17)
** Immediate Download
** Swift Response
** All Chapters included
,Table of Contents are given below
1.Economics: Foundations and Models
2.Trade-offs, Comparative Advantage, and the Market System
3.Where Prices Come From: The Interaction of Demand and Supply
4.Economic Efficiency, Government Price Setting, and Taxes
5.Externalities, Environmental Policy, and Public Goods
6.Elasticity: The Responsiveness of Demand and Supply
7.The Economics of Health Care
8.Firms, the Stock Market, and Corporate Governance
9.Comparative Advantage and the Gains from International Trade
10.Consumer Choice and Behavioral Economics
11.Technology, Production, and Costs
12.Firms in Perfectly Competitive Markets
13.Monopolistic Competition: The Competitive Model in a More
Realistic Setting
14.Oligopoly: Firms in Less Competitive Markets
15.Monopoly and Antitrust Policy
16.The Markets for Labor and Other Factors of Production
17.Public Choice, Taxes, and the Distribution of Income
,The test bank is organized in reverse order, with the last chapter displayed first, to ensure that all
chapters are included in this document. (Complete Chapters included Ch17-1)
Microeconomics, 9e (Hubbard)
Chapter 17 Public Choice, Taxes, and the Distribution of Income
17.1 Public Choice
1) Two aspects of taxes that are often the focus of economists and policymakers are ________ and
________.
A) taxes reduce the efficiency of the economy; taxes affect the distribution of income
B) taxes affect the distribution of income; taxes should always be levied on the wealthy
C) taxes increase the efficiency of the economy; taxes should be eliminated for those living below the
poverty line
D) the wealthy pay too much in taxes; taxes decrease income inequality
Answer: A
Diff: 2
Topic: Income Taxes
Learning Outcome: Micro-24: Explain the basic principles of tax policies and the tax system
AACSB: Analytical thinking
Special Feature: Chapter Opener: The Continuing Political Debate Over Taxes
2) An ideal tax would reduce economic efficiency ________ and would ________ income inequality.
A) the most; increase
B) the most; decrease
C) the least; increase
D) the least; decrease
Answer: D
Diff: 1
Topic: Income Taxes
Learning Outcome: Micro-24: Explain the basic principles of tax policies and the tax system
AACSB: Analytical thinking
Special Feature: Chapter Opener: The Continuing Political Debate Over Taxes
3) Employees ________ income tax on their wages and salaries, and ________ income tax on the amount
employers spend providing them with health insurance.
A) do not pay; do not pay
B) pay; pay
C) pay; do not pay
D) do not pay; pay
Answer: C
Diff: 1
Topic: Income Taxes
Learning Outcome: Micro-24: Explain the basic principles of tax policies and the tax system
AACSB: Analytical thinking
Special Feature: Economics in Your Life & Career: Which Is Better: A $1,000 Raise or $1,000 toward
Health Insurance?
1
, 4) According to public choice theory, policymakers
A) place the interests of the public above their own self-interest.
B) are likely to pursue their own self-interest, even if their self-interest conflicts with the public interest.
C) act in ways to maximize economic efficiency.
D) act in ways to bring about an equitable distribution of society's wealth.
Answer: B
Diff: 1
Topic: Public Choice
*: Recurring
Learning Outcome: Micro-19: Explain the concept of efficiency in the economy and obstacles to
achieving it
AACSB: Analytical thinking
5) The public choice model
A) examines the degree of market power that the public exerts in a market economy.
B) examines the public's role in appointing politicians and ensuring that elected officials act in ways to
reflect the public's preferences.
C) applies economic analysis to government decision making.
D) applies economic analysis to the collective decision making of consumers.
Answer: C
Diff: 1
Topic: Public Choice
*: Recurring
Learning Outcome: Micro-19: Explain the concept of efficiency in the economy and obstacles to
achieving it
AACSB: Analytical thinking
2
