Economics Mcqs

If a person who works in coal mine gets paid more than a person with a similar background and skills who works in a safer job, then ?

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If a person who works in coal mine gets paid more than a person with a similar background and skills who works in a safer job, then ?

A. coal miners must have greater human capital than others
B. we have observed a compensating differential
C. coal miners must be more attractive than other workers
D. we have evidence of discrimination against workers outside the coal mine

Tax incidence is the ?

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Tax incidence is the ?

A. structure of the tax.
B. ultimate distribution of a tax’s burden
C. behaviour of shifting the tax to another party
D. measure of the impact the tax has on employment and output

The marginal tax rate is ?

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The marginal tax rate is ?

A. the tax rate you pay on any additional income that you earn.
B. the total amount of tax you pay divided by your total income
C. the additional tax you pay divided by your total income
D. your total income divided by the total amount of tax you pay.

Vertical equity holds that ?

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Vertical equity holds that ?

A. those will equal ability to pay should bear equal tax burdens.
B. those who benefit the most from government service should bear the higher tax burden
C. those with equal ability to pay should bear unequal burdens
D. those with greater ability to pay should pay more

A Gini coefficient of zero means that the ?

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A Gini coefficient of zero means that the ?

A. the income is split equally between the top 20% and the rest of the distribution
B. one person has all the income and every one else has nothing
C. all the income is received by the top 20% of the income distribution
D. income is equally distributed

Supply of land in a given use ?

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Supply of land in a given use ?

A. will be perfectly inelastic in the long run. but upward slog in the short run
B. is perfectly inelastic since there is a fixed amount of land
C. is perfectly elastic since there is fixed amount of land
D. will be upward slog because as land becomes more valuable in once use, the amount of land made available for that use will increase