Public Choice Theory and the Economics of Taxation

In a scenario with three voters (Adams, Benson, and Conrad) who will be taxed $300 each for a public good costing $900, what is the likely outcome if the individual benefits are $700 for Adams, $250 for Benson, and $200 for Conrad?

What is the paradox of voting?

According to the median-voter model, if three voters have preferences for a public project's funding level at $300, $400, and $800, which proposal will likely win in a series of paired-choice majority votes?

What is the special-interest effect in public choice theory?

What term do economists use for the activity of appealing to government for special benefits at the expense of taxpayers or other groups?

Which principle of taxation asserts that the tax burden should be apportioned according to a taxpayer's income and wealth?

A tax is considered regressive if its average tax rate:

Based on the example in the text, if a 5 percent sales tax is applied, and low-income Smith with a $15,000 income spends it all while high-income Jones with a $300,000 income spends $200,000, why is the sales tax considered regressive?

In 2008, an individual earning exactly $102,000 in wages paid what percentage of their income in Social Security and Medicare payroll taxes combined?

When an excise tax is levied on a product with inelastic demand, who bears the larger portion of the tax burden?

What is the term for the sacrifice of net benefit to society that results from a tax reducing production and consumption below the level of economic efficiency?

The overall U.S. tax system, combining Federal, state, and local taxes, is generally considered by economists to be:

According to the text, which element of the U.S. government's fiscal activities has the most significant impact on reducing income inequality?

In the context of government failure, what are 'earmarks'?

What is logrolling in a political context?

In a hypothetical society where a public good has a total cost of $900 and a total benefit of $800, why might majority voting still lead to its approval?

Why is the Federal corporate income tax considered to be essentially a proportional tax in the short run?

The efficiency loss of a tax is greater when:

Which of the following is a primary reason that politicians might favor programs with clear, immediate benefits and vague, deferred costs?

What does the problem of 'limited and bundled choice' in the public sector imply?

In the short run, on whom does the incidence of the corporate income tax primarily fall?

Why might an excise tax on a product with negative externalities, like tobacco, actually improve allocative efficiency?

In a hypothetical three-person community (Adams, Benson, Conrad) voting on three public goods (national defense, a road, a weather warning system), the paradox of voting is demonstrated when:

Why are property taxes generally considered to be regressive?

A government's fiscal policy is considered neutral, according to the standardized budget concept, when:

According to the text, which of these is an example of a built-in stabilizer in an economy?

How much was the total value of earmarks in U.S. legislation in 2007?

What is the primary rationale behind the ability-to-pay principle of taxation?

When an excise tax is levied on a product with an elastic supply, who bears the larger portion of the tax burden?

What is a cyclical deficit?

In the public choice model of a three-person community with voters Adams, Benson, and Conrad, what does the median-voter model imply about their satisfaction with the level of government involvement?

Which of these is a reason the text provides for why bureaucratic agencies might be inefficient?

According to the 'Last Word' section, which of the following was an earmark included in a 2003 spending bill?

What is the primary difficulty in applying the benefits-received principle of taxation to public goods like national defense?

Which type of tax system has the steepest tax line T when tax revenues are plotted against GDP?

The Social Security payroll tax is considered regressive primarily because:

If a government enacts an expansionary fiscal policy during a recession, the standardized budget will:

What is the public choice theory critique regarding a politician's preference for programs with 'clear benefits, hidden costs'?

According to the text, the payment of interest on the U.S. public debt tends to increase income inequality because:

What is the crowding-out effect?

Public debt in the United States does not threaten to bankrupt the Federal government primarily because the government can:

What percentage of the U.S. Federal debt was held by foreigners in 2007?

The main economic burden of the U.S. public debt is considered by many economists to be:

What is the relationship between a country's tax system and its built-in stability?

The problem of timing fiscal policy includes all of the following lags EXCEPT:

The idea that a temporary tax cut might not be very effective at stimulating consumption is based on the concept of:

According to the text, the total U.S. public debt in 2007 was:

Public investments in infrastructure like highways can partially offset the crowding-out effect because:

What is the primary reason that state and local government fiscal policies are often 'pro-cyclical'?

In the Economic Stimulus Act of 2008, what form did most of the $152 billion in stimulus take?